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Business Recorder
5 hours ago
- Business
- 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.
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Business Standard
3 days ago
- Business
- Business Standard
India cuts crude edible oil duty to 10% to control prices, aid demand
To tame inflation in oils and fats, India has lowered the basic import tax on crude and refined edible oils by 10 percentage points, a move that is also expected to benefit the local processing industry. The decision is likely to bring down edible oil prices, boost demand, and subsequently increase overseas purchases of palm oil, soyoil and sunflower oil. India has halved the basic customs duty on crude palm oil, crude soyoil and crude sunflower oil to 10 per cent from the earlier 20 per cent, the government said in a notification. This will effectively bring down the total import duty on the three oils to 16.5 per cent from 27.5 per cent, as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge. Welcoming the move, Sudhakar Desai, president of the Indian Vegetable Oil Producers' Association (IVPA), said the government's decision to reduce the basic import duty on crude edible oil to 10 per cent while leaving net refined oil duties unchanged at 35.25 per cent would increase the duty differential between crude and refined edible oil to 19.25 per cent. 'It is a significantly bold move towards ensuring Make in India and also protecting the sector from an influx of refined oils causing capacity injury to the vegetable oil sector. This move will not just strengthen the domestic refining capacities of Indian refiners but also ensure a fair price to oilseed farmers and a fair price to consumers,' Desai said. According to IVPA data, imports of refined palm oil surged from 4.58 lakh metric tonnes during June–September 2024 to 8.24 lakh metric tonnes (representing about 30 per cent of total palm oil imports) in the period October 2024–February 2025. Additionally, under the South Asian Free Trade Area (SAFTA) provisions of zero duty, refined oils have been glutting the Indian market due to the huge refined oil duty advantage enjoyed by neighbouring countries.
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Business Standard
3 days ago
- Business
- Business Standard
India slashes import duty on crude edible oils to curb rising food prices
India lowered the basic import tax on crude and refined edible oils by 10 percentage points, the government said on Friday, as the world's biggest vegetable oil importer tries to bring down food prices and help local refining industry. The move will bring down edible oil prices and boost demand and subsequently increase overseas purchases of palm oil, soyoil and sunflower oil. New Delhi halved the basic customs duty on crude palm oil, crude soyoil and crude sunflower oil to 10% from earlier 20%, the government said in a notification seen by Reuters. 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. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
