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Transcript

Econ!

By Anisha Goyal

Start

reduction of tariffs on edible oil in India in 2021

This section focuses on the events that occured in the market in 2021

Demand And Supply

01

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  • Significant increase in domestic prices, which most likely happened due to an increase in domestic demand
  • Negative impact on Indian consumers and led to an increase of imports
  • Government reduced tariff, which is better for consumers and increases Imports

Domestic Demand and Supply of Edible Oil

E2

Change in Market after reduction on tarrif

02

The government reduced the tariff from T1 to T2 which is a reduction of USD 112 per tonneThere is a reduction in welfare loss from (a+b+c+d) to (c+d). There is also a reduction in government revenue, from e+f to f.

Change in Tariff of Edible oil

Focusing on different stakeholders and how they have been impacted

StakeHolders Impacted

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Impact on domestic producers is negative

Indian Producers

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Impact on customers is positive

Indian Customers

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Impact on indian Government is negative.

Government Of India

Stakeholders Impacted

Comparison between short and long run

Short Run Vs long run

04

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Negative impact on customers and manufacturers

Government was protecting an infant industry to help it grow

Long Run

Short Run

vs

Short run vs Long run

In conclusion

Thank you!

Thank you!