26,257 Crore extra income for Center as edibile oil import duty increase kicks in.

 Did you notice the rise in the price of edible oils on your last trip to the mall, grocery shop?

In this festive season, when oil consumption soars, the government of India, in its own wisdom, increased customs duty on crude edible oil from 5.5% to 27.5% and on refined edible oil from 13.7% to 35.7%, a jump of 22%.

This had led to an increase in the price of edible oil by almost 30% in retail.

Palm oil, used by most producers like Haldiram, has become 130 Rupees per liter against the earlier price of 100/- Likewise, the price of all edible oils, including sunflower oil have all gone up by around 30%.

Edible oil is consumed by the masses and this increase in customs duty is going to affect them the most.

Already, according to estimates, the poor are spending 52% of their income on food and now this will only add to their food costs.

India imports 119.35 Lakh Metric Tons of edible oil (2023-2024 figure). That translates to 119.35 x 1,000 (Kg) x 1,00,000 = 11,93,50,00,000 Kg.

If you take increase in price of 22 per kg, then this increase translates to 2,62,57,00,00,000 Rupees or 26,257 Crores per year.

The government is going to earn 26,257 Crore extra the next year by increasing this custom duty.

This burden will be borne by the 90% poor and middle class. The rich 10% are anyway not affected by such price rises.