Centre Cuts Base Import Prices Of Edible Oils, Gold, Silver

India has reduced the base import prices of crude and refined palm oil, crude soya oil and gold, the government said in a statement late on Friday, saying that the prices in the global market have improved.

The government revises the base import prices for edible oils, gold and silver every fortnight, and the prices are used to calculate the tax amount to be paid to an importer. India is the world's largest importer of edible oils and silver and the second largest consumer of gold.

The government has reduced the base price of crude palm oil from USD 996 to USD 937 per tonne. Along with this, RBD palm oil base price reduced from USD 1019 to USD 982 per tonne, RBD palmolein base price reduced from USD 1035 to USD 998 per tonne, crude soybean oil base price reduced from USD 1362 to USD 1257 per tonne, base price of gold. The base price of silver has been reduced from USD 549 per 10 grams to USD 553 per 10 grams and the base price of silver has been reduced from USD 635 per kg to USD 608 per kg.

Regarding this change, tax experts said that the reduction in duty value may bring down the prices of edible oil in the domestic market as it reduces the customs duty payable on the base import price. Therefore, along with the reduction in the base import prices of crude and refined palm oil, crude soya oil and gold, their value in the domestic market decreases.

Due to reduction in base price, common people can get some relief from inflation. Considering the increasing oil imports in India, the demand in the markets remains very weak, which is causing the prices of edible oils to break down.