India cuts import tax on crude edible oils to help reduce food prices
MUMBAI: India halved the basic import tax on crude edible oils to 10% on Friday, the government said, as the world's biggest vegetable oil importer tries to bring down food prices and help the local refining industry.
The customs duty applies to crude palm oil, crude soyoil and crude sunflower oil.
It will effectively bring down the total import duty on the three oils to 16.5% from earlier 27.5% as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
'This is a win-win situation for vegetable oil refiners as well as consumers, as local prices will go down due to the duty reduction,' said B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA).
The government did not change the import duty on refined palm oil, refined soyoil or refined sunflower oil, which currently attract a 35.75% import tax.
The import duty gap between refined and crude edible oils has risen to 19.25%, which will prompt importers to bring in crude edible oils instead of refined oils and boost the local refining industry, Mehta said.
India meets more than 70% of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, said the cut in the basic duty would bring down edible oil prices and help revive retail demand, which has been subdued in recent months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
India's May palm oil imports jump to six-month high
MUMBAI: India's palm oil imports in May surged to a six-month high, as lower inventories and the tropical oil's discount to rival soyoil and sunflower oil prompted refiners to increase purchases, according to five dealers. Higher palm oil and soyoil imports by India, the world's biggest buyer of vegetable oils, could support Malaysian palm oil prices and US soyoil futures. Palm oil imports in May surged 87% month-on-month to 600,000 metric tons, the highest since November 2024, according to estimates from dealers. India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, said the Solvent Extractors' Association of India, which is set to publish its May import data by mid-June. Palm oil imports fell sharply from January to April due to its premium over soyoil, which led to lower stock levels in India, said Rajesh Patel, managing partner at GGN Research, an edible oil trader. 'Since palm oil started selling at a discount last month, Indian buyers have gone back to palm oil,' Patel said. India's vegetable oil stocks fell to 1.35 million tons as of May 1, the lowest since July 2020, according to SEA data. Soyoil imports in May rose 10% month-on-month to 398,000 tons, the highest since January, dealers said. Sunflower oil imports, meanwhile, edged higher by 2% to 184,000 metric tons. Higher imports of palm oil and soyoil lifted India's total edible oil imports in May by 37% from a month ago to 1.18 million tons, the highest since December, according to dealers' estimates. Palm oil imports are likely to rise further to 750,000 tons in June and 850,000 tons in July, Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage. The recent correction in palm oil prices and reduction in import duty is likely to boost consumption in India, Bajoria said. India halved the basic import tax on crude edible oils to 10% on Friday to bring down food prices and help the local refining industry. India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Nepal's edible oil imports were 132,000 tons in May, up from 87,000 tons in April, GGN Research estimated.
Business Recorder
19 hours ago
- Business Recorder
India's May palm oil imports jump 87% to six-month high, dealers say
MUMBAI: India's palm oil imports in May surged to a six-month high, as lower inventories and the tropical oil's discount to rival soyoil and sunflower oil prompted refiners to increase purchases, according to five dealers. Higher palm oil and soyoil imports by India, the world's biggest buyer of vegetable oils, could support Malaysian palm oil prices and U.S. soyoil futures. Palm oil imports in May surged 87% month-on-month to 600,000 metric tons, the highest since November 2024, according to estimates from dealers. India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, said the Solvent Extractors' Association of India, which is set to publish its May import data by mid-June. Palm oil imports fell sharply from January to April due to its premium over soyoil, which led to lower stock levels in India, said Rajesh Patel, managing partner at GGN Research, an edible oil trader. 'Since palm oil started selling at a discount last month, Indian buyers have gone back to palm oil,' Patel said. India cuts import tax on crude edible oils to help reduce food prices India's vegetable oil stocks fell to 1.35 million tons as of May 1, the lowest since July 2020, according to SEA data. Soyoil imports in May rose 10% month-on-month to 398,000 tons, the highest since January, dealers said. Sunflower oil imports, meanwhile, edged higher by 2% to 184,000 metric tons. Higher imports of palm oil and soyoil lifted India's total edible oil imports in May by 37% from a month ago to 1.18 million tons, the highest since December, according to dealers' estimates. Palm oil imports are likely to rise further to 750,000 tons in June and 850,000 tons in July, Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage. The recent correction in palm oil prices and reduction in import duty is likely to boost consumption in India, Bajoria said. India halved the basic import tax on crude edible oils to 10% on Friday to bring down food prices and help the local refining industry. India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Nepal's edible oil imports were 132,000 tons in May, up from 87,000 tons in April, GGN Research estimated.
Business Recorder
2 days ago
- Business Recorder
India cuts import tax on crude edible oils to help reduce food prices
MUMBAI: India halved the basic import tax on crude edible oils to 10% on Friday, the government said, as the world's biggest vegetable oil importer tries to bring down food prices and help the local refining industry. The customs duty applies to crude palm oil, crude soyoil and crude sunflower oil. It will effectively bring down the total import duty on the three oils to 16.5% from earlier 27.5% as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge. 'This is a win-win situation for vegetable oil refiners as well as consumers, as local prices will go down due to the duty reduction,' said B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA). The government did not change the import duty on refined palm oil, refined soyoil or refined sunflower oil, which currently attract a 35.75% import tax. The import duty gap between refined and crude edible oils has risen to 19.25%, which will prompt importers to bring in crude edible oils instead of refined oils and boost the local refining industry, Mehta said. India meets more than 70% of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, said the cut in the basic duty would bring down edible oil prices and help revive retail demand, which has been subdued in recent months.
