With the Centre reducing the customs duty on all grades of olive oil to 7.5 per cent from the previous rates of 45 per cent on virgin olive oil and 40 per cent on refined olive oil, prices of olive oil are likely to come down by up to 15 per cent on the stocks imported after April 1.
According to Indian Olive Association (IOA) President V. N. Dalmia, the benefits of reduced customs duty would be visible in the next few weeks provided the international prices remain stable. The IOA had sent representations to the Government to reduce the duty on olive oil based on its numerous health benefits and the absence of a domestic market , he added.
“We are gratified that the importance of olive oil is being recognised.
“Due to the high rate of import duty, its consumption is restricted to high-end consumers as the average consumer finds it too expensive,” said Mr. Dalmia.
Pointing out that the fall in prices of olive oil is subject to exchange rates remaining stable, Mr. Dalmia said much of the benefit of the duty reduction had been wiped out due to the recent appreciation of the euro.
“We will now raise this issue with the Government and ask it to classify extra virgin olive oil, which is raw in nature, with crude oils that attract no duty ,” he added.
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