The central government is considering reducing the cess on edible oil imports. This will lead to a reduction in the price of edible oil and may benefit the public to some extent. India was importing half of its oil from Indonesia. But a sudden ban on palm oil and crude oil exports by Indonesia caused a stir in India. Oil prices have risen sharply due to rising demand and declining supply. The government is considering reducing the five per cent agri cess on edible oil imports by the Ministry of Consumer Affairs. India is the largest importer of oil from Malaysia, followed by Indonesia. Meanwhile, Malaysia is already failing to supply oil to its old customers. Indonesia is the world's largest exporter of palm oil. But their decision to ban exports has caused a stir around the world.
Talking about the crisis created by the shortage of edible oil, the officials said that there are other alternatives for edible oil in our country. But the price of oil is a concern. The government may decide to reduce the agriculture cess to control oil prices. India is Indonesia's largest importer of palm oil. India imports about 9 million tonnes of palm oil annually from Indonesia. Palm oil alone accounts for 40% of India's total edible oil needs. According to experts, if no alternative to oil is found in the near future, oil prices will soon double.