New Delhi: As the festive season approaches, the consumption of sweets and oily food items often increases significantly. During this time, the consumption of sugar and edible oils increases, which also affects their prices. The prices of edible oils and sugar usually increase during the festive season. This time too, such apprehensions are being expressed, because the government has increased the basic customs duty on crude soybean oil, palm oil and sunflower oil from zero to 20 percent. This change has come into effect from September 14.

However, the government believes that the prices of sugar and edible oils will remain stable during the festive season. Food Secretary Sanjeev Chopra said on Wednesday that the prices of essential commodities like sugar and edible oil are stable and there is no possibility of any increase in prices during the upcoming festive season. He assured consumers that the recent increase in customs duty on some edible oils to increase the income of domestic oilseed farmers will not lead to any significant increase in prices.

Why import duty increased on import of oils

The government increased the basic customs duty on crude soybean oil, palm oil and sunflower oil from zero to 20 percent. At the same time, the duty on refined variants was increased from 12.5 percent to 32.5 percent. Its purpose is to increase the income of oilseed farmers and promote domestic industry. Chopra said that 1.3 million tonnes of edible oil imported at zero duty is still in stock. The industry has been instructed to sell this stock at current prices until it is exhausted.

Chopra said, "There is no need to increase prices by 20 per cent with the increase in duty even after the stock is exhausted. International prices will come down a little." He also stressed that several policy decisions of the last year have helped in keeping the prices of essential commodities under control. The food secretary called it an achievement of Prime Minister Narendra Modi's third term.