Further cuts in import duty on edible oils
Indian government has further reduced the base custom duties on palm, soybean and sunflower oils, in order to control the increasing edible oils prices during the upcoming festival season. The move will result in a revenue loss of INR 1,100 crore to the government. According to the industry, reduction in the duty is expected to bring the retail prices down by INR 4-5 per litre.
According to Ministry of finance, on crude palm oil, the base import tax has been reduced to 2.5% from 10%, whereas on crude soyabean oil and crude sunflower oil, it has been reduced from 7.5% to 2.5%.
Effective duty on crude palm oil, crude soyabean oil and crude sunflower oil, after the reduction, has been brought down to 24.75%, while effective duty on refined palm oil, soyoil and sunflower oil will be 35.75%.
Ministry of Food and Consumer Affairs commented that owing to international prices, “domestic prices of edible oils have been ruling high during 2021-22 which is a cause of serious concern from inflation as well as consumer’s point of view.” In India, edible oil prices has been rising despite several government measures to calm it down. 60% of the domestic oil demand in India is met through import.