By lowering the import duty, the govt aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation

FPJ News Service mumbai

The central government on Wednesday  reduced the basic customs duty on crude edible oils namely crude sunflower, soybean, and palm oils from 20% to 10% resulting in the import duty differential between crude and refined edible oils from 8.75% to 19.25%.

This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices. An advisory has been issued to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers.

The 19.25% duty differential between crude and refined oils helps to encourage domestic refining capacity utilization and reduce imports of refined oils.

Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers.