Government cuts Import Duties to fight Inflation

Under pressure from public, opposition and even its allies to curb the rising prices of essential commodities, the UPA government in the centre has decided to scrap import duties on crude edible oils and banned export of non-basmati rice. The government move came after the inflation rate touched a 14-month high at 6.68%.

Prices of wheat, sugar, edible oils and steels have gone up significantly in the past few weeks. Edible oil prices will definitely come down, as the import duty has been slashed to zero. Duty on maize imports was also cut to zero from 15 percent. While a ban on exports of pulses was extended for 12 months, exports of non-basmati rice will be stopped with immediate effect.