Effective oil import duty
Why in the News?
The Minister approves the removal of minimum export duty on Basmati rice and a reduction in onion from 40% to 20%, while the Consumer Affairs Ministry sells onions at ₹35 per kg.
Key Highlights :
- The decision to increase the import duty on edible oils from zero to 20%.
- The minimum export duty on Basmati rice and the increase in basic duty on refined oil to 32.5%.
- These measures would benefit oilseed farmers, particularly soya bean and green gram farmers, and ensure good prices for their crops.
- The removal of the minimum export duty on Basmati rice to help farmers, resulting in increased demand for Basmati rice and exports.
- The reduction in the export duty on onion from 40% to 20%, benefiting onion farmers and other related sectors.
- The retail sale of onion at a subsidized rate of ₹35 a kg for controlling retail prices.
- The government has initiated wholesale disposal of onion in major cities, with plans to extend to Hyderabad, Bengaluru, Kolkata, and all State capitals.