The Aryavarth Express
Agency (New Delhi): Government of India is closely monitoring the domestic retail prices of edible oils to ensure that the full benefits of decrease in international prices is passed on to the end consumers. Government has taken following measures to control and ease the prices of edible oils in the domestic market: –
The basic duty on Crude Palm Oil, Crude Soyabean Oil, and Crude Sunflower oil was cut from 2.5% to Nil. The Agri-cess on Oils was brought down from 20% to 5%. On 15th January 2024, this duty structure has been extended to 31st March, 2025.
The basic duty on Refined Soybean oil and Refined Sunflower Oil was reduced to 17.5% from 32.5% and the basic duty on Refined Palm Oils was reduced from 17.5% to 12.5% on 21.12.2021. This duty structure has been extended up to 31st March 2025.
In order to maintain availability, the Government has extended the free import of Refined Palm Oils till further orders.
The import duty on Refined Sunflower Oil and Refined Soybean Oil has been reduced from 17.5% to 12.5% with effect from 15.06.2023
The international prices of major Edible oils such as Crude Soybean Oil, Crude Sunflower Oil, Crude Palm Oil and Refined Palm Oils are showing a decreasing trend since last year. Due to continuous efforts made by the Government to ensure that the decrease in the international prices of edible oils get passed on fully in the domestic market, the retail prices of Refined Sunflower Oil, Refined Soybean Oil and RBD Palmolien have decreased by 22.67%, 16.36% and 9.69% as on 29.01.2024 respectively over a year.
Department of Consumer Affairs monitors the daily retail and wholesale prices of 22 essential food commodities through 550 price monitoring centre set up in 34 States/Uts. The daily report of prices and indicative price trends are duly analysed for taking appropriate decisions for release of stocks from the buffer to cool down prices, imposition of stock limits to prevent hoarding, changes in trade policy instruments like rationalization of import duty, changes in import quota, restrictions on exports of the commodity etc.
Price Stabilization Fund (PSF) has been set up to check the volatility in the prices of agri-horticultural commodities in order to mitigate the hardships faced by consumers. The objectives of PSF are (i) to promote direct purchase from farmers/farmers’ associations at farm gate/mandi; (ii) to maintain a strategic buffer stock to discourage hoarding and unscrupulous speculation; and (iii) to protect consumers by supplying such commodities at reasonable prices through calibrated release of stock. The consumers and farmers are the beneficiaries of the PSF.
Since the inception of Price Stabilisation Fund (PSF) corpus in 2014-15 till date, the Government has provided budgetary support of Rs.27,489.15 crore for providing working capital and other incidental expenses for the procurement and distribution of agri-horticultural commodities.
Currently, under the PSF, dynamic buffer stock of pulses (Tur, Urad, Moong, Masur and Gram) and onion are being maintained. The calibrated release of stocks from pulses and onion buffer have ensured availability and affordability of pulses and onion to the consumers and purchase for such buffer has also contributed to providing remunerative prices to farmers of these commodities.
In order to check the volatility in prices of tomato and make it available to the consumers at affordable prices, the Government had procured tomatoes under Price Stabilisation Fund and made it available at a highly ubsidized rate to consumers. The National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED)procured tomato from mandis in Andhra Pradesh, Karnataka and Maharashtra and made it available at affordable prices in major consuming centres in Delhi-NCR, Bihar, Rajasthan, etc. after subsidizing the price to the consumers. The tomatoes were disposed initially at a retail price of Rs.90/- per kg which was reduced successively to Rs.40/kg for the benefit of consumers.
In order to check the volatility in prices of onion, the Government maintains onion buffer under the PSF. The buffer size has been increased year after year from 1.00 LMT in 2020-21 to 2.50 LMT in 2022-23. The onions from the buffer are released in major consumption centres during the lean season from September to December in a calibrated and targeted manner to cool down prices. The onion buffer target for 2023-24 has been enhanced to 7 LMT. The disposal of onion from the buffer in major markets where prices have increased has been ongoing. As on 03.02.2024, a total of 6.32 LMT of onion has been procured. The Govt. has imposed prohibition on export of onion w.e.f 08.12.2023 to check price rise and improve supplies in the domestic market.
To augment domestic availability and moderate the prices of pulses, import of tur and urad have been kept under ‘Free Category’ till 31.03.2025 and import duty on masur has been reduced to zero till 31.03.2025. Import duty of 10% on tur has been removed to facilitate smooth and seamless imports.
Stocks of chana and moong from the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) buffer are continuously released in the market to moderate prices. Chana is also supplied to the States at a discount of Rs.15/kg for welfare schemes.
GoI is committed to ensure the welfare of its farmers, PDS beneficiaries as well as ordinary consumers by ensuring minimum support prices for farmers, free rations (wheat, rice and coarse grains/millets) under PMGKAY for five years till 31.12.2028 for Antyodaya and Priority households, and fair and affordable rates of wheat, atta, rice, dal and onions/tomatoes as well as sugar and oil, for ordinary consumers.
