The New Nation - Internet Edition

THE government has reportedly decided to withdraw import duty on edible oil in coming days. The Finance Adviser has referred to the recommendation of the NBR, which has noted the uptrend in price of edible oil. In fact, the price of imported soyabean oil has virtually doubled. The demand for soyabean oil has increased, mainly due to fall in the production of oil seeds in the country. The supply of edible oil is thus dependent on imports. The production of mustard oil has decreased as that farmers fail to keep the price at competitive levels. Those importing, processing and marketing soyabean oil have so far obtained good margins of profit.

The reported move to reduce duty on this item sounds useful. Withdrawal or reduction of import duty may enable the business community to bring adequate shipments of edible oil and distribute the same at lower prices. The government may have to go for additional measures for monitoring the work of the importers and distributors of edible oil. Some agile elements in the distribution of soyabean oil have even smuggled part of the imported oil to neighbouring countries and earned extra profit.

It is to be highlighted that as the supply of edible items including vegetable oil at affordable prices remains uncertain, restaurants may have a tendency to use adulterated oil to keep prices of the food items cheaper. Already reports on the increase of gastrointestinal diseases among consumers of food of such shops in different areas have been noted. Thus, while making efforts to lower the prices of oil the authorities should also keep an eye on this major user to prevent adulteration in the interest of public health.