India Slashes Import Duties to Boost Domestic Edible Oil Sector
The Indian government reduced the basic custom duty on crude palm, soyabean, and sunflower oils from 20% to 10% to lower retail prices and support domestic processors. The effective import duty for these oils is now 16.5%. Industry leaders applaud the decision, emphasizing its benefits for domestic refining and consumer prices.
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To curb rising prices and support local industries, the Indian government has slashed the basic custom duty on crude palm oil, soyabean oil, and sunflower oil from 20% to 10%. This policy shift is expected to lower retail costs and revitalize the domestic processing sector.
According to a notification from the finance ministry, the effective import duty, including additional charges, on these crude oils is now reduced to 16.5% from the previous 27.5%. By maintaining the duty on refined oils at 32.5%, the government aims to encourage the shift from refined imports to domestic refining.
Industry bodies like the Solvent Extractors Association of India and the Indian Vegetable Oil Producers' Association have welcomed the move. They believe this decision will bolster domestic refining by incentivizing crude oil imports over refined products, benefiting both consumers and local producers.
(With inputs from agencies.)
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