Government Slashes Import Duties to Boost Domestic Edible Oil Industry
The Indian government has cut the basic customs duty on crude palm, soybean, and sunflower oils from 20% to 10% to support domestic processors and lower retail prices. Industry bodies praised this decision, expecting a boost in local refining and reduced imports of cheaper refined oils.
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In a strategic move to bolster domestic edible oil processing and alleviate consumer costs, the Indian government has reduced the basic customs duty on imports of crude palm, soybean, and sunflower oils from 20% to 10%.
This adjustment, effective immediately, aims to protect the local industry by creating a larger duty differential between crude and refined oils, the latter of which retains a 35.75% import duty. Industry leaders have welcomed the decision, highlighting its potential to enhance local refining capacity and curb the influx of more affordable refined oils.
The reduction is poised to significantly impact India's import dynamics, as the nation relies heavily on Southeast Asian countries like Malaysia and Indonesia for palm oil. Food Secretary Sanjeev Chopra affirmed the duty cut's immediate implementation, resonating positively within industry circles.
(With inputs from agencies.)
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