The government of india has reduced the base import price of gold and some edible oils. Every 15 days the central government revises the base prices of gold, edible oils, and silver. Every 15 days the central government revises the base prices of gold, edible oils, and silver. These rates of duty are used to determine the amount of duty an importer has to pay. india is a major importer of gold and edible oil. Although the government has increased the duty to reduce gold imports, it does not seem to have helped much.
However, as cooking oil plays an important role in basic needs, its import has become inevitable. In the recent past, the import of cooking oil has come down drastically due to various factors like the impact of Corona and then the import problem due to the Russia-Ukraine issue. Due to this, the price skyrocketed.
Currently, as the value of the US dollar is strengthening in the international market, it is having an impact on the price of gold. Meanwhile, this price cut by the government may lead to further price reductions. It may be recalled that the gold import duty was increased from 7.5% to 12.5% last July. 
This is in the context of falling gold prices internationally, the indian government has also reduced the base price. This makes it 49,231 rupees per 10 grams. In a week so far only around 1500 rupees have fallen. The US Dollar hit a two-year high of $1664.48 as the bond market continued to rally. It's down 3% so far this week alone.
This decision by the central government is expected to accelerate the demand for gold and cooking oil during the approaching festive season. As the demand is higher during the festive season than the normal season, the price may come down due to this decision of the government. It is also expected to be a measure to curb inflation.
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