Centre raises basic duty on refined oils to 32.5 %, cuts export duty on onions 

In major pro-farmer decisions, the Central Government on Saturday said it had raised the basic duty on refined oil to 32.5%, cut export duty on onions from 40 to 20, increased import duty on edible oils from zero to 20% and removed minimum export duty on basmati.

The decisions come on the eve of Haryana and J-K elections, followed by Maharashtra and Jharkhand Assembly polls which are also due.

“The decision to raise basic duty on refined oils will increase the demand for mustard, sunflower and groundnut crops for refinery oil.

“Farmers will be able to get better prices for these crops and with the increase in refineries in small and rural areas, employment opportunities will also increase there,” Agriculture Minister Shivraj Singh Chouhan said.

He said due to reduction in export duty, onion-producing farmers will get good prices for their crop and onion export will also increase.

On removal of export duty on basmati, Chouhan said basmati-producing farmers will get fair prices for their produce and with the increase in demand for basmati rice, exports will also rise.

The minister added, “The farmer-friendly government has taken a decision to increase the import duty on edible oils from 0% to 20%. The total effective duty will be 27.5% after adding other measures. Increasing the import duty will increase the prices of soybean crop and edible oil manufacturers will also be encouraged to buy the crop from domestic farmers. Due to which, farmer brothers and sisters will be able to get a fair price for their crop. This decision will increase the production of soya meal and it can be exported. Along with this, other sectors related to soya will also benefit,” Chouhan said.

Hailing the announcements, Prime Minister Narendra Modi said, “We are leaving no stone unturned in the interest of our farmer brothers and sisters who work day and night for the food security of the country. Whether it is reducing the export duty on onions or increasing the import duty on edible oils, many such decisions are going to greatly benefit our food producers. While these will increase their income, employment opportunities will also increase in rural areas.”