Govt may increase import duty on edible oils, export more wheat

The government is considering increasing the import duty on edible oils to give a fillip to domestic crushing and protect the interest of growers. It is also considering allowing the export of more wheat to clear stocks ahead of the new procurement season.

“The decisions in this regard were taken at a high-level meeting between Finance Minister P Chidambaram, Food Minister K V Thomas and Agriculture Minister Sharad Pawar. A Cabinet note on all the decisions will be moved soon,” a senior government official said.

Adding: “The import duty on crude edible oils is expected to be raised to five per cent from the current zero duty and that on refined edible oils is expected to be raised to 10-15 per cent from the existing 7.5 per cent.

“While the agriculture ministry wanted to hike import duties on both, crude and refined oil, the finance ministry felt this would lead to a rise in retail prices and food inflation.”

The meeting between the three ministers was called against the backdrop of a sudden rise in edible oil imports because of poor domestic crushing as duties have made import favourable.