Centre Lowers Basic Customs Duty On Crude Edible Oils To 10%
The Ministry of Consumer Affairs directed industry players to transmit the benefits of the duty reduction to consumers.
The Centre has decreased the basic customs duty on crude edible oils sunflower, soybean and palm from 20% to 10%, according to a release by the Ministry of Consumer Affairs, Food & Public Distribution on Wednesday.
This will widen the import-duty gap between crude and refined edible oils from 8.75% to 19.25%. This revision aims to counter rising edible oil prices due to the September 2024 duty hike and global market fluctuations, the ministry said.
An advisory has been issued to edible oil associations and industry stakeholders to make sure that consumers gain from the reduced duty, the release said.
The import duty on edible oils plays a vital role in deciding their landed cost and domestic prices. By lowering the import duty on crude oils, the government plans to lower both the landed cost and retail prices, providing relief to consumers and assisting to curb overall inflation, the press release said.
The reduced duty will also encourage domestic refining and maintain fair compensation for farmers, it added.
The revised duty structure will discourage the import of refined Palmolein and push the demand toward crude edible oils, mainly crude palm oil.
This measure aims to only ensure a level-playing field for domestic refiners but also provide stabilisation of edible oil prices for Indian consumers, the ministry said in the release.
A meeting chaired by the Department of Food and Public Distribution secretary took place with major edible oil industry associations and stakeholders.
An advisory was issued during the meeting directing industry players to transmit the benefits of the duty reduction to consumers. Stakeholders are expected to adjust the price to distributors and maximum retail price to reflect the lower landed costs.
