The government is considering extending the subsidy on vegetable oil imports until the end of the current financial year, said K V Thomas, Union minister of state for agriculture and food at the sidelines of a recent seminar here.
The government launched a scheme on July 28, 2008, to distribute up to a million tonnes of edible oil at a subsidy of Rs15 per kg, which was enhanced to Rs25 per kg in early 2009. It was stopped in end-March 2009 and then resumed in August 2009 to distribute another million tonnes, till March 31, 2010, later extended to October 31.
A ministry source said a proposal to extend the nil import duty on crude palm oil and 7.5 per cent on refined oil is also under consideration, for extension until January 31, 2011. By then, the crop estimate of both kharif and rabi seasons will be available, the source added. Since the government continues to strive to bring food inflation under control, a further extension in subsidy on edible oil may fetch some relief , an industry official said. Thomas said the agriculture ministry had sent its suggestion to the commerce ministry. Let’s hope the decision is favourable, the minister added.