National Edible Oil Mission
The Union Cabinet has approved an investment of Rs 11,040 crore in a National Mission on Edible Oils. It will increase palm oil production in India and reduce dependency on imports. The mission aims to increase palm oil production by 3x to 11.20 lakh tonnes by 2025-26. It will be further raised to 28 lakh tonnes by 2029-30.
The edible oil mission is one more step to reduce dependency on imports and encourage domestic manufacturers. Due to import reliance, India often faces volatility in the pricing of edible oils. But, with active domestic industry, such a situation can be avoided in the future.
Diesel Prices Tapering Off
After staying stable for over a month, fuel prices have started to moderate. Petrol prices are still firm, but diesel prices have reduced across all the metro cities in India. Despite the little moderation, diesel prices are still very high as compared to a year back. At Rs 97.04 a litre, diesel price is the highest in Mumbai among metros.
Fuel prices have been stable since OPEC's decision last month to increase production and improve the supply of oil. Moderating diesel prices is the first sign showing that the move has started to cast its effect. In the coming days, fuel prices are expected to moderate further as oil supply improves in the international market.
What Next on Retro Tax Post Abolishment?
The central government is preparing to settle disputes after abolishing the retro tax. It is likely to offer a final settlement to companies in concern. As per the available information, the government could offer to refund only the principal tax collected and not pay any interest or penalty.
The government, while arriving at a settlement, would also want to safeguard itself against any litigation at any global forum in the future. It is also crucial if companies would be willing to agree with the settlement offer or not. If not agreed, they could take a legal route or prefer to negotiate until the final decision is arrived at.
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