Govt considering more import duty cuts to check inflation: Nath

[Sukumar]

Ahead of Cabinet Committee meeting on Prices for considering options
to tame rising inflation, Commerce and Industry Minister Kamal Nath
said the government is looking at further cuts in duties on import of
essential commodities.

"Yes, we are looking at further cuts. There is increase in
international oil prices and it has to be met with import duty
caliberation which we are considering," Nath told reporters.

The government has already slashed import duty on edible oils,
including palm oil from 45 per cent to 20 per cent.

Besides, stringent conditions have been imposed on exports of non-
Basmati rice while export incentives on 40 to 50 items, including
steel and chemical products have been withdrawn.

While the government cut the customs duty on edible oil to control the
13-month high inflation of 6.68 per cent, the foreign suppliers jacked
up their margins taking advantage of the shortages in the country,
traders said.

Faced with a difficult task of checking price rise, attributed to
global hardening trend, Finance Minister P Chidambaram had said in
Mumbai on Friday that tackling inflation would be the top priority of
the government even if economic growth rate has to be sacrificed by a
few percentage points.

N.Sukumar
Research Analyst
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