Noida, Sep 24 (APAC Media): The government has reduced the basic customs duty on several crude and refined edible oils in a move aimed at lowering import costs and easing pressure on domestic prices.
The basic customs duty on crude soybean oil and crude palm oil has been reduced to 5 per cent from 10 per cent. The duty on refined soybean oil and refined palm oil has also been cut to 27.5 per cent from 32.5 per cent.
The government has announced a sharper reduction in duties on sunflower oil. The basic customs duty on crude sunflower oil has been brought down to nil from 10 per cent, while the duty on refined sunflower oil has been reduced to 22.5 per cent from 32.5 per cent.
The duty cuts are expected to reduce the landed cost of imported edible oils and could eventually ease prices for consumers.
“Lower import duties should reduce the cost burden on importers and refiners. However, the extent of any reduction in retail prices will depend on international prices and other supply-chain costs,†industry sources said.
India relies significantly on imports to meet domestic edible oil demand, making local prices sensitive to international commodity prices, exchange-rate movements, freight costs and availability in global markets.
“The impact of the duty reduction will not necessarily be immediate. Prices at the retail level will also depend on how quickly the benefit moves through the distribution chain,†an industry representative said.
The move comes amid concerns over elevated edible oil prices and food inflation. Palm oil, soybean oil and sunflower oil constitute a major portion of India’s vegetable oil imports.
For domestic oilseed producers, however, lower import duties could increase competition from imported oils.
Market participants are expected to closely monitor how the move affects both consumers and domestic oilseed prices.
The government is likely to monitor edible oil prices and market conditions following the duty revision.
The latest decision is part of efforts to manage domestic edible oil prices while maintaining supplies in a market where imports play a significant role.
Industry participants said the reduction could provide some relief to refiners and consumers, although the actual price impact will become clearer as the revised duty structure feeds into the domestic market.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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