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Business Standard
a day ago
- Business
- Business Standard
Center slashes basic custom duty on crude edible oils to 10%; Aims to reduce retail prices
Centre has reduced the Basic Customs Duty (BCD) on crude edible oils namely crude sunflower, soybean, and palm oils has been reduced from 20% to 10% resulting in the import duty differential between crude and refined edible oils from 8.75% to 19.25%, according to Ministry of Consumer Affairs, Food & Public Distribution. This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices. An advisory has been issued to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers. 19.25% duty differential between crude and refined oils helps to encourage domestic refining capacity utilization and reduce imports of refined oils. Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers.
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Business Standard
2 days ago
- Business
- Business Standard
Govt asks edible oil industry to pass tax cut benefits to retail users
The government had reduced the Basic Customs Duty (BCD) on crude edible oils-specifically crude sunflower oil, soybean oil, and palm oil-from 20 per cent to 10 per cent on 31 May New Delhi The Department of Food and Public Distribution (DFPD) held a meeting with leading edible oil associations and industry stakeholders. An advisory was issued, instructing them to pass on the benefits of the reduced duty to consumers, said the Ministry of Consumer Affairs, Food & Public Distribution. The government had reduced the Basic Customs Duty (BCD) on crude edible oils—specifically crude sunflower oil, soybean oil, and palm oil—from 20 per cent to 10 per cent on 31 May. This revision has widened the import duty differential between crude and refined edible oils from 8.75 per cent to 19.25 per cent. The advisory directed all stakeholders to immediately revise the Price to Distributors (PTD) and Maximum Retail Price (MRP) in accordance with the new import duty, ensuring that cost savings are transmitted across the supply chain to end consumers. PTD is the rate at which manufacturers or importers sell to distributors. It includes production costs, taxes, and distributor margins. MRP is the maximum price that can be charged to consumers, encompassing all taxes and profit margins throughout the supply chain. Weekly reporting of price adjustments Edible oil associations were advised to ensure that their members implement immediate price adjustments and share updated brand-wise MRP data with the department on a weekly basis. The DFPD also provided a standardised reporting format for revised MRP and PTD submissions. 'This decision follows a detailed review of the sharp rise in edible oil prices after last year's duty hike. The increase led to significant inflationary pressure on consumers, contributing to rising food inflation,' the government statement said. 'This adjustment (tax reduction) aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices,' said the Ministry of Consumer Affairs, Food & Public Distribution. Explaining the rationale behind the revised import duty structure, the ministry stated: 'A 19.25 per cent duty differential between crude and refined oils helps encourage domestic refining capacity utilisation and reduce imports of refined oils.' Boost to domestic refining capacity This move is expected to lower the landed cost of crude edible oils, reduce retail prices, and provide relief to consumers. It also aims to promote the utilisation of domestic refining capacity, thereby curbing the import of refined oils. 'The timely transmission of this benefit through the supply chain is imperative to ensure that consumers experience a corresponding decrease in retail prices,' the ministry added.
Business Upturn
2 days ago
- Business
- Business Upturn
Centre slashes import duty on crude edible oils from 20% to 10% to ease consumer prices
By News Desk Published on June 11, 2025, 19:01 IST In a move aimed at cooling retail inflation and stabilizing domestic prices, the Government of India has reduced the Basic Customs Duty (BCD) on major imported crude edible oils — including crude sunflower, soybean, and palm oil — from 20% to 10%, effective immediately. The decision was announced on June 11, 2025, by the Ministry of Consumer Affairs, Food & Public Distribution. This revision narrows the duty gap between crude and refined edible oils to 19.25%, a step designed to promote domestic refining and reduce reliance on refined oil imports. The government expects the reduced BCD to lower landed costs, offering price relief to consumers while easing food inflation pressures that have intensified since the import duty hike in September 2024. Officials emphasized that the revised structure would discourage the import of refined palmolein, redirecting demand toward crude variants, particularly crude palm oil, and thus boosting the domestic refining sector's viability and capacity utilization. A coordination meeting chaired by the Secretary of the Department of Food and Public Distribution (DFPD) directed edible oil associations to ensure the benefit is passed down to consumers. Associations have been instructed to update Price to Distributors (PTD) and Maximum Retail Prices (MRP) in line with the duty reduction and share weekly price updates with the government. This intervention, according to the ministry, comes after a detailed review of surging edible oil prices and is intended to create a level playing field for domestic refiners while safeguarding consumers from further inflationary stress. News desk at
India.com
30-05-2025
- Business
- India.com
Govt Imposes Wheat Stock Limits On Traders To Keep Prices In Check
New Delhi: The Centre has imposed stock limits on wheat applicable to traders/wholesalers, retailers, big chain retailers and processors in order to prevent hoarding and speculation that drives up inflation. "In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government of India has imposed stock limits on wheat applicable to wholesalers, retailers, big chain retailers, and processors in all states and Union Territories,' the Ministry of Consumer Affairs, Food & Public Distribution said on Thursday. The Wheat Stock limit are as under: (i) Traders/Wholesaler: 3000 MT; (ii) Retailer: 10 MT for each Retail outlet. (iii) Big Chain Retailer: upto 10 MT for each retail outlet subject to maximum quantity of (10 multiplied by total no. of outlets) MT. This will be the maximum stock that can be held at all their retail outlets and depots put together. (iv) Processors: 70% of Monthly Installed Capacity (MIC) multiplied by remaining months of FY 2025-26. All wheat stocking entities are required to declare/ update the stock position on every Friday on wheat stock portal ( which will be migrated in due course of time to Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act,1955. In case the stocks held by above entities are higher than the above prescribed limit, they shall have to bring the same to the prescribed stock limits within 15 days of issue of the notification. Officials of Central and State Governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country. Central Government has procured 298.17 LMT wheat (upto 27.05.2025) through State Agencies/FCI which is sufficient to meet requirement of PDS, OWS and other market intervention schemes. The Department of Food and Public Distribution is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country.
India Gazette
29-05-2025
- Business
- India Gazette
Centre imposes wheat stock limits on Traders to manage overall food security
New Delhi [India], May 29 (ANI): In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the government has imposed stock limits on wheat applicable to traders, wholesalers, retailers, big chain retailers and processors in all states and Union Territories. The removal of licensing requirements, stock limits and movement restrictions on Specified Foodstuffs (Amendment) Order, 2025 is issued on May 27 and is applicable until March 31, 2026, for all states and Union Territories, Ministry of Consumer Affairs, Food & Public Distribution said in an official statement on Thursday. The Wheat Stock limit are as under: Traders/Wholesaler: 3000 MT; Retailer: 10 MT for each Retail outlet; Big Chain Retailer: upto 10 MT for each retail outlet subject to maximum quantity of (10 multiplied by total no. of outlets) MT. This will be the maximum stock that can be held at all their retail outlets and depots put together; Processors: 70 per cent of Monthly Installed Capacity (MIC) multiplied by remaining months of FY 2025-26. All wheat stocking entities are required to declare the stock position on every Friday on wheat stock portal which will be migrated in due course of time. Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act,1955, as per the ministry. In case the stocks held by above entities are higher than the above prescribed limit, they shall have to bring the same to the prescribed stock limits within 15 days of issue of the notification. Officials of Central and State Governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country. The Central government has procured 298.17 LMT wheat (upto 27.05.2025) through state agencies, FCI which is sufficient to meet requirements of PDS, OWS and other market intervention schemes. The Department of Food and Public Distribution is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country. (ANI)
