JAIPUR: With taxes on import of palm oil set to go up as per the Budget proposals, mustard oil is poised to get a competitive edge. The price of mustard, which has already shot up by about 40-50% in the past 5-6 months, is expected to go up further fetching better price for farmers.
A leading agri commodities organisation in the state on Tuesday said because of the cess imposed on imports, the tax incidence on imports has gone up from 30.25% to 35.75% and this is likely to have an upward impact on prices of mustard oil as well. “This will help farmers get better price for their produce even though prices of mustard oil will go up pinching the pockets of consumers. Secondly, the state’s farmers will benefit as palm oil becomes costlier and demand shifts to mustard oil,” said Babulal Gupta, president of Rajasthan Khadya Padarth Vyapar Sangh.
While India is the world’s biggest importer of vegetable oils, Rajasthan produces more than half of the mustard in the country. Gupta said the state will have better mustard crop this year and the produce has already started coming to mandis. “Hope, the produce fetches better price for farmers,” added Gupta.
The finance minister has reduced basic custom duty on palm oil from 27.5% to 15%, she has imposed Agriculture Infrastructure and Development Cess of 17.5% on the commodity taking the effective tax to 37.5% from 30.25%, as per Gupta.