The government’s move to reduce the custom duty on crude palm oil has brought down the retail prices of vanaspati in the local markets. Vanaspati that was priced within the range of Rs 1,050 to Rs 1,100 per 15 kg pack in mid-March has come down to Rs 850 to Rs 900 now.
Besides duty reduction, what helped domestic vanaspati manufacturers lower price tags was the decline of around 100 dollars a tonne in global prices of crude palm oil. Crude palm oil is the major ingredient needed to manufacture vanaspati.
“Vanaspati manufacturers have completely passed on the benefit of customs duty reduction to consumers,” S P Kamrah, secretary general, Indian Vanaspati Producers Association (IVPA) said in a statement.
According to Kamrah, post-duty reduction has seen a decline in vanaspati prices by around Rs 200 per 15 kg, which stands at Rs 13 per kg.