The central government is thinking to raise import duty on edible oil. It was, earlier, cut significantly in the beginning of the year. The union agriculture ministry is of the view to bring it back to the original level. The union commerce department is also backing the proposal of increasing import duty. Oil prices are very unstable from last few weeks following world financial crisis. The Cabinet committee on pricing will discuss the matter in its proposed meeting on November 3.

Union agriculture minister, Sharad Pawar said that it is need of the hour to revise import duty on edible oil. The government would take final decision on the issue after Diwali. Union finance ministry is also likely to back the idea in the wake of world financial crisis.

Meanwhile, domestic oil producers requested the government to raise duties on both edible and crude. The Solvent Extractors Association says, the prices of oil are declining in the international market causing big losses to the domestic oil industry. It has asked the government to lift ban on oil export to save their interests.