Soya, sunflower oil import duty cut: Cooking oil may get cheaper ahead of festival; how much relief can common man EXPECT from Modi Govt? Check this report

In big relief or consumers of cooking oil, the Narendra Modi government has taken a big decision to make oil cheaper ahead of festivals. The Central government has cut down import duty on Soya and sunflower oil from Rs 15 per cent to 7.5 per cent. This simply means importing oil will become cheaper and that will directly benefit consumers who already have been reeling under high petrol, diesel prices and LPG rate.   

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Earlier the government has also cut down duty on crude, palm oil. The prices of cooking oil have seen tremendous jump, with the prices being increased by up to 50 per cent in the last one year.  

त्योहारों से पहले खाने का तेल सस्ता, कितना फायदा पहचेगा आम आदमी को जानिए @MrituenjayZee से pic.twitter.com/GY2urK5XSe

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Mrituenjay Kumar Jha, Commodity Editor and Anchor of Consumer, Political shows at Zee Business, said this duty has been relaxed only till September 30, 2021. " This was done with an aim to bring down oil prices during the time of festivals," he said.  

This reduction of 7.5 per cent in import duty on the said oil prices will translate roughly into $100 or around Rs 7500 per tonne, he said. "Experts say even if this amount does not pass on due to increase in oil prices in global market, at least these oil prices will be lowered by SR 4,000 to Rs 5000. This means that for end consumers, soya and sunflower oil would get cheaper by Rs 4 to 5 per litre. Ideal situation is that oil prices should come down by Rs 4 to 5 in the domestic market under present circumstances," said Mrituenjay. 

The only problem is that this order is only valid for 6 weeks and ultimate benefit will depend on how much import deals India make during this period. "But one thing is sure that the government has made its intention clear and wants to provide relief to the consumers. This development assumes significance as nearly 60 per cent of total consumption of cooking oil in India depends on imports," he added.