India Allows Duty-Free Imports of Crude Soybean, Sunflower Oil

BANKING AND ECONOMY

The Union government scrapped customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of crude soyabean oil and crude sunflower oil for 20 lakh metric tonnes each per year for a term of two financial years - 2022-23 and 2023-24.

Under the notification released by the Ministry of Finance, a customs duty and Agri infra development cess of 5.5% would be removed on the product.

The customs duty was cancelled to ease local prices of these oils and control inflation. This will provide significant relief to the consumers.

With this, a total of 80 lakh MT of crude soyabean oil and crude sunflower oil could be imported duty-free. With this imported duty-free oil, soyabean oil prices are expected to come down by Rs 3 per litre. In this fiscal year 2022-23, the country intends to import 35 lakh tonnes of crude soyabean oil and about 16-18 lakh tonnes of crude sunflower oil.

Few other steps taken by the Union government to control inflation of a few products are;

  • Excise duty on petrol and diesel were reduced.
  • Waived import duty on some raw materials used in the steel and plastic industry.
  • Export duty was hiked on iron ore and iron pellets.

The other demand was to reduce the import duty on rice bran oil and canola oil to boost domestic supplies and check retail prices.

 

   Important points for the exam:

  • The Union government cancelled customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of crude soyabean oil and crude sunflower oil for two financial years - 2022-23 and 2023-24.
  • The customs duty was cancelled to ease the local prices of these oils and control inflation. 
  • With this, a total of 80 lakh MT of crude soyabean oil and crude sunflower oil could be imported duty-free in these financial years.
  • The other demand was to reduce the import duty on rice bran oil and canola oil to boost domestic supplies and check retail prices.

   Facts to know:

  • Union Minister of Finance: Ms Nirmala Sitharaman.
  • Repo rate fixed by RBI: 4.40%.
  • Customs duty refers to the tax imposed on goods when they are transported across international borders. 
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