The Hindu Business Line : Govt resorts to more import duty cuts, export ban

New Delhi, April 1 Faced with unrelenting price rise in the economy, especially on the essential food items front, the Centre has scrapped import duty on all crude form of edible oils, placed a ban on export of non-basmati rice, hiked the minimum export price (MEP) on basmati rice to $1,200 per tonne, and extended the existing ban on export of pulses for one more year beginning April 1.

According to the Government decision, import duty on refined palm, sunflower, soyabean, coconut and groundnut oil has been cut to 7.5 per cent from 27.5 per cent earlier.

Hydrogenated vegetable fats and oils have been allowed to be imported at 7.5 per cent customs duty. In the case of all edible oils, the crude form will be allowed to be imported at zero duty.

Moreover, the customs duty on butter and ghee has also been cut from 40 per cent to 30 per cent. Import duty on maize has been scrapped, from the current level of 15 per cent, for 5,00,000 tonnes under the tariff rate quota.

Apart from tariff measures, the Government has also taken a slew of administrative steps to improve supply in the domestic market.

To enable State governments to impose stock limits, it has been decided to keep in abeyance for one year the order on removal of licensing restrictions that applied to edible oils, oilseeds and rice.

This means the States can impose stock limits under the Essential Commodities Act, a power that is already vested with them.

However, inter-State movements in imports will be excluded from the proposed order in stock limits.

“Only five or six States have exercised the power given to them. There is a large onus on State governments to exercise the power they wanted. It is largely unexercised and we would want the States to act,” the Finance Minister, Mr P. Chidambaram, said while announcing the decisions.

It has also been decided to allow export of castor oil, coconut oil and all oils produced out of minor forest produce except sesame oil.

However, coconut oil export will be allowed only from Kochi port.

The export quantities will be monitored and this permission to export will be available until further orders.

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