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31-May-2025     11:54
Government cuts import duty on crude edible oil, move likely to reduce domestic prices
The government has reduced the basic customs duty on crude palm oil, crude soyabean oil and crude sunflower oil by 10%. The effective import duty, which includes basic customs duty and additional fees on these three products, now stands at 16.5%, down from the previous 27.5%. For refined oils, the effective duty stands at 35.75%. Solvent Extractor's Association of India (SEA) has noted that the Government's decision to increase the duty differential from 8.25% to 19.25% is a bold and timely move. It will discourage imports of refined palmolien and shift demand back to crude palm oil, thereby revitalizing the domestic refining sector. This move will not impact the overall volume of edible oil imports and is unlikely to cause any upward pressure on edible oil prices. On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers.

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