June 20:Edible oils will be available at subsidised rates through ration shops in fifteen States from the next month.The Government has introduced a scheme for distribution of 10 lakh tonnes of imported edible oils in 2008-09 at a subsidy of Rs. 15/- per kg. through State Governments at the rate of 1 kg. per ration card per month. Public Sector Undertakings „o PEC, MMTC, STC and NAFED „o have been entrusted the job of import, refining, packing and distribution of subsidized edible oils to the States. The subsidy will be to the tune of Rs.1500 crore.
PSUs have already contracted import of 1.79 lakh tonnes of edible oils for the purpose. Out of this, one lakh tonnes of edible oils have been shipped to Indian ports.
The 15 States who have desired to participate in the scheme are Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Meghalaya, Nagaland, Orissa, Rajasthan, Sikkim, Tamil Nadu, Tripura and West Bengal. These State Governments have been allocated oil by the Department of Food & Public Distribution. PSUs have started giving packed edible oil to the States. It is expected that regular distribution of oil to ration cardholders will begin by next month.
The availability of edible oils in the country from domestic sources is less than the demand and the deficit is being met by imports. The import dependence on edible oils has been 34% to 39% of the total consumption of edible oils in the country during the last three years. There was unprecedented rise in international prices of edible oils in the last two years. This has also affected domestic prices. The scheme for distribution of edible oils through ration shops will provide relief to the poorer sections of society besides ensuring steady availability of edible oils to these people.
In the context of rise in prices of edible oils in the country and hardship to consumers, especially the poorer sections, the Government has been taking a number of steps to contain the prices of edible oils. As a result, the increase in the domestic prices of edible oils has been kept low as compared to international prices. The measures taken, besides distribution of edible oils at subsidized rates, include: –
(i) Import Duty on crude and refined palm oils was 80% and 90% respectively as on 10.08.2006. Duties on these oils were reviewed and revised downwards from time to time. With effect from (w.e.f.) 1.4.2008, duty on crude and refined palm oils was reduced to Nil and 7.5% respectively.
(ii) Import duty on crude and refined sunflower oil was 75% as on 23.1.2007. The duty was reduced from time to time. W.e.f. 1.4.2008, duty on crude and refined sunflower oil was reduced to Nil and 7.5% respectively.
(iii) Import duty on crude and refined mustard/rapeseed oil was reduced from 75% to 20% and 75% to 27.5% respectively w.e.f. 21.3.2008, which has further been reduced to Nil and 7.5% respectively w.e.f. 1.4.2008.
(iv) Import duty on crude and refined soyabean oil was reduced from 45% to 40% w.e.f. 21.3.2008. Duties on crude and refined form of these oils have further been reduced to Nil and 7.5% respectively w.e.f. 1.4.2008.
(v) Import duty on crude and refined form of other edible oils has been reduced to Nil and 7.5% respectively w.e.f. 1.4.2008.
(vi) Export of edible oils has been banned w.e.f. 17.3.2008. However, w.e.f. 1.4.2008 the export restriction has been lifted in respect of coconut oil (through Cochin Port) and certain oils produced from minor forest origin.
(vii) State Governments have been allowed to impose stock limits on edible oils and oilseeds w.e.f. 7.4.2008.