Latest news with #SudhakarDesai
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
Malay Mail
2 days ago
- Business
- Malay Mail
India slashes import tax on crude edible oils, include palm, to 10pc to boost domestic demand
NEW DELHI, May 31 — India has reduced the basic import tax on edible oils by 10 percentage points, a move that is expected to improve domestic retail cooking oil demand. This move reduces the basic duty on crude palm oil (CPO), crude soybean oil and crude sunflower oil to 10 per cent from 20 per cent. The effective import duty, which includes agriculture infrastructure and development cess and social welfare surcharge, on crude edible oils will now be 16.5 per cent compared with 27.5 per cent earlier. The Indian Vegetable Oil Producers' Association (IVPA) welcomed the government's decision to slash the duty on crude edible oil imports while leaving it unchanged for refined oils. '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 the consumers,' the trade body's president, Sudhakar Desai, said in a statement. India is the world's biggest importer and second-largest consumer of edible oils. Nepalese refiners have significantly increased their sales to India under the South Asian Free Trade Area (SAFTA) rules since the Indian government raised the basic customs duty on crude edible oils from zero to 20 per cent and from 12.5 per cent to 32.5 per cent on refined products in September last year. Indian oilseed crushers had said the narrow duty differential between the crude and refined varieties was hurting their interests. — Bernama
The Sun
3 days ago
- Business
- The Sun
India cuts import tax on crude edible oils
NEW DELHI: India has reduced the basic import tax on edible oils by 10 percentage points, a move that is expected to improve domestic retail cooking oil demand. This move reduces the basic duty on crude palm oil (CPO), crude soybean oil and crude sunflower oil to 10 per cent from 20 per cent. The effective import duty, which includes agriculture infrastructure and development cess and social welfare surcharge, on crude edible oils will now be 16.5 per cent compared with 27.5 per cent earlier. The Indian Vegetable Oil Producers' Association (IVPA) welcomed the government's decision to slash the duty on crude edible oil imports while leaving it unchanged for refined oils. '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 the consumers,' the trade body's president, Sudhakar Desai, said in a statement. India is the world's biggest importer and second-largest consumer of edible oils. Nepalese refiners have significantly increased their sales to India under the South Asian Free Trade Area (SAFTA) rules since the Indian government raised the basic customs duty on crude edible oils from zero to 20 per cent and from 12.5 per cent to 32.5 per cent on refined products in September last year. Indian oilseed crushers had said the narrow duty differential between the crude and refined varieties was hurting their interests.
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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.
