India to sell edible oils at lower rates from July

by Dave

India will provide edible oils at subsidised rates through ration shops in 15 states from July, in an attempt to lower the impact of high prices on poor people, a government statement said on Friday.

The government has introduced a scheme for distribution of 1 million tonnes of imported edible oils in 2008/09 at a subsidy of 15 rupees per kg through state governments at the rate of 1 kg per ration card per month, the statement said.

The state-run agencies have already contracted import of 179,000 tonnes of edible oil for the purpose, of which 100,000 tonnes have landed. The subsidy bill will cost 15 billion rupees.

India, which is about 40 percent import dependent, is the second largest edible oil importer after China. It mainly imports soyoil from Argentina and Brazil and palm oil from Indonesia and Malaysia.