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The Print
a day ago
- Business
- The Print
Govt cuts import duty on crude edible oils to 10 pc; move to cool prices, protect local industry
India imports more than 50 per cent of its domestic edible oil requirement. Earlier, the duty on these three crude edible oils was 20 per cent. New Delhi, May 30 (PTI) The Centre on Friday reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent, a move aimed at bringing down the retail prices of cooking oils and protecting domestic processors. India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October), valuing Rs 1.32 lakh crore. A notification in this regard was issued by the finance ministry on Friday with immediate effect. When contacted, Union Food Secretary Sanjeev Chopra said the government has slashed the basic custom duty on crude edible oils to 10 per cent from 20 per cent. Industry body Solvent Extractors Association of India's (SEA) executive director B V Mehta said the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil has been reduced to 10 per cent from the earlier 20 per cent. The effective import duty (including the basic custom duty and other charges) on these three products will now be 16.5 per cent as against the 27.5 per cent earlier. The basic custom duty on refined oil remains unchanged at 32.5 per cent. At present, the effective duty on refined oils is 35.75 per cent. Industry bodies SEA and the Indian Vegetable Oil Producers' Association (IVPA) welcomed the decision. They have been demanding increasing the duty difference between the crude and refined edible oils to protect the domestic processors. In a late-night statement, SEA president Sanjeev Asthana said, 'The government's decision to increase the duty differential between crude and refined oils from 8.25 per cent to 19.25 per cent is a bold and timely move. It will discourage imports of refined palmolein and shift demand back to crude palm oil, thereby revitalising the domestic refining sector.' The reduction in duty on crude oil will help reduce domestic prices, benefiting consumers, he added. Mehta pointed out that imports of refined palm oil have risen of late, because it is cheaper than the crude palm oil. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. IVPA president Sudhakar Desai said, 'We thank the government for accepting the IVPA recommendation to increase the duty differential between crude and refined edible oils to 19.25 per cent.' It is a significantly bold move towards ensuring Make in India and also protecting the sector from the influx of refined oils, causing capacity injury to the vegetable oil sector, Desai said. 'This is a win-win situation for vegetable oil refiners and consumers, as the local price will go down due to the lower duty on crude oils,' Mehta said. On September 14, 2024, the basic custom duty on crude soyabean oil, crude palm oil and crude sunflower oil was raised from 0 per cent to 20 per cent. PTI MJH RC This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Economic Times
2 days ago
- Business
- Economic Times
Import duty cut on crude edible oils will protect local processors: Industry bodies
Edible oil industry bodies SEA and IVPA have hailed the government's decision to cut basic custom duty on crude oils to 10 per cent, saying the move will discourage imports of finished products and safeguard the interests of domestic refiners. ADVERTISEMENT On Friday, the government reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from earlier 20 per cent. The effective import duty (including basic custom duty and other charges) on these three products will now be 16.5 per cent, as against 27.5 per cent earlier. With a sharp rise in imports of refined palmolien in the past six months, both industry bodies have been urging the government to increase the duty difference between crude edible oils and refined edible oils. Welcoming the decision, Solvent Extractors Association of India (SEA) President Sanjeev Asthana said, "the government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent 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, he said. ADVERTISEMENT "On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers," Asthana said. India imports more than 50 per cent of its domestic edible oil requirement. ADVERTISEMENT India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October) valuing Rs 1.32 lakh crore. The basic custom duty on refined oils remains unchanged at 32.5 per cent. ADVERTISEMENT At present, the effective duty on refined oils is 35.75 per cent. The Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai said, "We thank the government for accepting the IVPA recommendation to increase the duty differential between crude and refined edible oil to 19.25 per cent." ADVERTISEMENT It is a significantly bold move towards ensuring Make in India and also protecting the sector from influx of refined oils causing capacity injury to the vegetable oil sector, Desai said. "This is a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils," SEA Executive Director B V Mehta said. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. SEA pointed out that the previous import duty difference of 8.25 per cent between CPO (crude palm oil) and refined palmolien had inadvertently incentivized imports of the finished product over the crude form. As a result, during the oil year 2023- 24 (November-October), refined palmolien accounted for over 20 per cent of total palm oil imports, and in the first half of oil year 2024-25 (November 2024-April 2025), its share rose to nearly 27 per cent. On May 29, the C&F price of RBD palmolien was USD 45 per tonne lower than CPO, further encouraging refined imports at the cost of domestic value addition, the SEA added.
Time of India
2 days ago
- Business
- Time of India
Industry bodies hail cut on crude oil customs duty, call it timely support for refiners
Representative image NEW DELHI: Industry associations Solvent Extractors' Association (SEA) and Indian Vegetable Oil Producers' Association (IVPA) have welcomed the government's decision to reduce the basic customs duty on crude edible oils to 10 per cent, calling it a timely intervention that supports domestic refiners and discourages imports of finished products. Announced on Friday, the policy reduces the basic customs duty on crude palm, soybean, and sunflower oils from 20 per cent to 10 per cent. The effective import duty now stands at 16.5 per cent, down from 27.5 per cent. In contrast, refined edible oils continue to attract a 32.5 per cent basic duty, with an effective duty of 35.75 per cent. The move follows concerns raised by the industry over rising imports of refined palmolien. Over the past six months, SEA and IVPA had urged the government to widen the duty gap between crude and refined edible oils to protect local refiners. 'The government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent 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,' said SEA President Sanjeev Asthana. He added that while overall edible oil import volumes may remain unchanged, domestic prices are likely to fall, benefitting consumers. India, which imports over 50 per cent of its edible oil requirements, brought in 159.6 lakh tonnes worth Rs 1.32 lakh crore during the 2023–24 oil marketing year. Key sourcing countries include Malaysia and Indonesia for palm oil, and Brazil and Argentina for soybean oil. IVPA President Sudhakar Desai expressed appreciation for the government's acceptance of their recommendation to expand the duty gap, calling the step a boost for domestic manufacturing. SEA Executive Director B V Mehta described the revised duty structure as 'a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils.' Previously, the narrow 8.25 per cent duty gap between crude palm oil (CPO) and refined palmolien had incentivised finished product imports. Refined palmolien accounted for over 20 per cent of total palm oil imports in 2023–24, rising to nearly 27 per cent in the first half of 2024–25. On May 29, the cost-and-freight (C&F) price of refined, bleached, and deodorised (RBD) palmolien was USD 45 per tonne lower than that of crude palm oil, further skewing trade in favour of refined imports. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
Import duty cut on crude edible oils will protect local processors: Industry bodies
Edible oil industry bodies SEA and IVPA have hailed the government's decision to cut basic custom duty on crude oils to 10 per cent, saying the move will discourage imports of finished products and safeguard the interests of domestic refiners. On Friday, the government reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from earlier 20 per cent. The effective import duty (including basic custom duty and other charges) on these three products will now be 16.5 per cent, as against 27.5 per cent earlier. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo With a sharp rise in imports of refined palmolien in the past six months, both industry bodies have been urging the government to increase the duty difference between crude edible oils and refined edible oils. Welcoming the decision, Solvent Extractors Association of India (SEA) President Sanjeev Asthana said, "the government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent 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." Live Events This move will not impact the overall volume of edible oil imports and is unlikely to cause any upward pressure on edible oil prices, he said. "On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers," Asthana said. India imports more than 50 per cent of its domestic edible oil requirement. India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October) valuing Rs 1.32 lakh crore. The basic custom duty on refined oils remains unchanged at 32.5 per cent. At present, the effective duty on refined oils is 35.75 per cent. The Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai said, "We thank the government for accepting the IVPA recommendation to 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 influx of refined oils causing capacity injury to the vegetable oil sector, Desai said. "This is a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils," SEA Executive Director B V Mehta said. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. SEA pointed out that the previous import duty difference of 8.25 per cent between CPO (crude palm oil) and refined palmolien had inadvertently incentivized imports of the finished product over the crude form. As a result, during the oil year 2023- 24 (November-October), refined palmolien accounted for over 20 per cent of total palm oil imports, and in the first half of oil year 2024-25 (November 2024-April 2025), its share rose to nearly 27 per cent. On May 29, the C&F price of RBD palmolien was USD 45 per tonne lower than CPO, further encouraging refined imports at the cost of domestic value addition, the SEA added.
Mint
2 days ago
- Business
- Mint
Import duty cut on crude edible oils will protect local processors: Industry bodies
New Delhi, May 31 (PTI) Edible oil industry bodies SEA and IVPA have hailed the government's decision to cut basic custom duty on crude oils to 10 per cent, saying the move will discourage imports of finished products and safeguard the interests of domestic refiners. On Friday, the government reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from earlier 20 per cent. The effective import duty (including basic custom duty and other charges) on these three products will now be 16.5 per cent, as against 27.5 per cent earlier. With a sharp rise in imports of refined palmolien in the past six months, both industry bodies have been urging the government to increase the duty difference between crude edible oils and refined edible oils. Welcoming the decision, Solvent Extractors Association of India (SEA) President Sanjeev Asthana said, "the government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent 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, he said. "On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers," Asthana said. India imports more than 50 per cent of its domestic edible oil requirement. India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October) valuing ₹ 1.32 lakh crore. The basic custom duty on refined oils remains unchanged at 32.5 per cent. At present, the effective duty on refined oils is 35.75 per cent. The Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai said, "We thank the government for accepting the IVPA recommendation to 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 influx of refined oils causing capacity injury to the vegetable oil sector, Desai said. "This is a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils," SEA Executive Director B V Mehta said. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. SEA pointed out that the previous import duty difference of 8.25 per cent between CPO (crude palm oil) and refined palmolien had inadvertently incentivized imports of the finished product over the crude form. As a result, during the oil year 2023-24 (November-October), refined palmolien accounted for over 20 per cent of total palm oil imports, and in the first half of oil year 2024-25 (November 2024-April 2025), its share rose to nearly 27 per cent. On May 29, the C&F price of RBD palmolien was USD 45 per tonne lower than CPO, further encouraging refined imports at the cost of domestic value addition, the SEA added.
