Agricultural Cess on Crude Palm Oil (CPO) reduced from 7.5% to 5%
- Recently the central government has reduced the Agricultural Cess on Crude Palm Oil (CPO) from 7.5% to 5%.
- This decision has been taken due to increase in the prices of edible oils globally. This will prevent further increase in the prices of domestic edible oils.
- The reduction in agricultural cess will give impetus to the domestic edible oil industry. This will benefit the domestic refining industry in importing crude oil for refining.
- Agriculture Infrastructure and Development Cess (AIDC) is also known as Agriculture Cess. It is a tax that the government levies on the commercial production of agricultural produce.
Edible oil in India:
- Edible oil is India’s third highest valued import after crude oil and gold.
- India is the largest importer of vegetable oils. India meets two-thirds of its domestic demand through imports. Its annual cost is up to $10 billion.
Other measures taken to increase domestic production:
- National Edible Oil Mission (Drupam Oil NMEO-OP) has been implemented.
- Palm oil field is being expanded under Rashtriya Krishi Vikas Yojana.
- Minimum support price for oilseed crops has been increased.
- Buffer stock has been created for oilseeds.
- Cluster based demonstration of oilseed crops is being organized.
Source – The Hindu
