Lok Sabha Question No. 392 (UNSTARRED), answered on 2021-07-20
Subject: Duty on Crude Palm Oil
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Bhola Singh, Manoj Kishorbhai Kotak, Rajveer (Raju Bhaiya) Singh, Raja Amareshwara Naik, Naranbhai Bhikhabhai Kachhadiya, Parbatbhai Savabhai Patel, Vinod Kumar Sonkar

## GOVERNMENT OF INDIA

## MINISTRYoFcoNsUf{tERAFFA|RS,FooD&PUBLIGDISTRIBUTIoN DEPARTIVIENT  OF FOOD AND PUBLTC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 392 TO BE ANSWERED  ON 2O11{JULY,2O21

## DUTY ON GRUDE PALM OIL

392. SHRI BHOLASINGH:

SHRI MANOJ KOTAK:

SHRI RAJVEER SINGH (RAJU BHAIYA):

SHRI RAJA AMARESHWARA NAIK:

SHRI NARANBHAI KACHHADIYA:

SHRI PARBATBHAI SAVABHAI PATEL:

SHRI VINOD KUMAR SONKAR:

Will the Minister of  GONSUMER  AFFAIRST FOOD AND PUBLIG

DISTRTBUTTOX  sEre{ttrr arri, uru  glk  Urffio  fud{q uifr be pteased to state!

- (a)  whether the Government has reduced duty on crude palm oil by 5 percent to reduce edible oil prices to bring relaef to the consumels;
- (b) if so, the detaits thereof and its impact on prices;
- (c)  whether the Govemment  has recommended removal of the restriction on:mportofRBDPalmotein(RefinedPalmoil)andtoputitintheopen general category of imports, if so, the details thereof along wath the total domestic  demand for edible oils in the country;
- (d)  the measures being taken by the Ministry to enhance the production of refined oil in the eountry especially in Guiarat; and
- (e)  whether the Govemment  has stressed on creation of modern storage facilities  at  grass root and btock levels for essential commodities  to increase farmers!  incomer if sor the action taken thereon?

## ANSWER

MINISTER OF STATE FOR MIilISTRY OF RURAL DEVELOPMENT AND CONSUMER  AFFAIRS' FOOD & PUBLIG DISTRIBUTIOI{ (SADHVI  NIRAilJAN  JYOTI)

(a) & (b): Yes' Sir. The Government vide Notification No. 34/202{ -Customsr dated 29th Juner 2O21, has reduced the standard rate of duty on crude palm oil bY 5 percent from 30.06.2O2{  and will effect  upto 30th September' 2O2{'

The domestic wholesale  and retail prices as on 13.7.2021 on comparison with the prlces on 29.o,fi..2021 is given below:

- (i) The wholesale prices of groundnut oil, mustard oil, vanaspatar  RBD patmoleln and sesame oil increased by 1-82o/o1 0.610/o1 0.67o/o1 O.360/o and O.837o respectivety while the prices of soyabean oil, sunflower oll and coconut  oil decreased  by O.34"/"1O.3{% and 3.9{o/o respectively.
- (ii)  The retait  prices of groundnut  oit, mustard  oil, Yanaspati, soyabean  oil and RBD palmolein  increased by {.OO%, O.7Oo/o1 1.54o/o2 O.23o/o  and 0.64o/o respectively while the prices of sunflower  oil decreased  by O.13%.
- (c): The Goyernment vide DGFTts Notification No. { O/2O15'2O2O  dated 3Oh June, 202{, has amended the import Poticy of Refined Palm Oils from srestrictedt  to  "freet  with immediate  effect and for a  period  of upto 31.12.2021. The domestac  production of edible oils in the country  is unable to meet the domestic demand of around 25O LMT and the Gountry has to rely on imports  to meet the sholtfall.
- (d): To enhance the production of refined oil in the country, the standard rate of duty on crude palm oil has been reduced lo lOo/o from 30.O6.202{
- and will effect upto 30th Septembeq2O2l.
- (e): Storage capaclty of FCI  depends upon  the level  of procurement,  requirement of buffer norms and PDS. Storage gap ls assessed in the procurlng  states based on the highest stock levels in the last three years and in the consuming states on the basis of 4 months (6 months in case of l{E regions) requirement  of NFSA and OWS.

FGI is augmenting  lts storage capacity through following schemes :'

- {. Private Entrepreneurs  Guarantee (PEG) Scheme
2. Gentre Sector Scheme  (GSS).
3. Gonstruction  of SILO's under PPP mode
4. Hiring of godown from GWGs/SWGs/State Agencies
5. Private Warehousing Scheme  (PWS)

As on 3O.O6.2O2tr Storage capacity available with FGI and State agencies for storage of central  poot foodgEin stock is 9{5.65 Lakh MT (Govered  -723.4  LMT and GAP  -  {93.21 LMT).

GWG has floated Eol for settang up cold storage in its warchousos on PAN tndia basls. GWG lntends to develop cold Ghaln facilitles at around  .l9o  locatlons.  Gwc has slgned MoU with ilAFED for provldlng storage space and related services by cwc to NAFED for the procurement operation to be undertaken by I{AFED.

A new model for c/o storage in remote areas has been implemented under which MOU has been slgned between GWG and FGI for  clo godowns on FGI land by CWC on guaranteed hiring basis in Zanskar & Drass, Ladakh (3340 MT each) & Zunheboto ,  Nagaland (5OOO MT) & amsai ({670 MT} Arunachal

MOU has been signed on 19.O3.2O2{ with Arunachal Agricultural Marketing Board for setting up Farm Gate Logistics lnfrastructure  @ Rs.{.8Ocr./5O:5O profit sharing basis in  3  districts'Lower Subansiri, Ghanglang & Lohit.