New Delhi, 30 May (PTI) Center on Friday reduced the original custom duty on crude palm oil, crude soybean oil and raw sunflower oil by 10 percent, which aims to bring down the cooking oil retail prices and protect the domestic processor.
Earlier, the duty on these three crude edible oils was 20 percent.
India imports more than 50 percent of its domestic edible oil requirement.
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India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October), with a price of Rs 1.32 lakh crore.
A notification in this regard was released by the Finance Ministry on Friday with immediate effect.
On contact, the Food Secretary of the Union Sanjeev Chopra said that the government has dropped the original custom duty on crude food oils from 20 percent to 10 percent.
BV Mehta, Executive Director of Industry Body Solvent Extractors Association of India (SEA), said that the original custom duty on raw palm oil, crude soybean oil and crude sunflower oil has reduced from 20 percent to 10 percent.
Effective import duty on these three products (including original custom duty and other allegations) will now be 16.5 percent compared to 27.5 percent earlier.
The original custom duty on sophisticated oil remains unchanged at 32.5 percent.
Currently, effective duty on sophisticated oils is 35.75 percent.
Industry Bodies C & Indian Vegetable Oil Producers Association (IVPA) welcomed the decision.
They are demanding to increase duty differences between raw and sophisticated edible oils for the protection of domestic processors.
In late night statement, C President Sanjeev Asthana said, “The decision to increase the duty difference between raw and sophisticated oils from 8.25 percent to 19.25 percent is a adventure and time step. He said that reduction in duty on crude oil will help reduce domestic prices, consumers will be benefited.
Mehta said that the import of sophisticated palm oil has increased late, as it is cheaper than crude palm oil.
India imports palm oil from Malaysia and Indonesia. Soybean oil comes from Brazil and Argentina.
IVPA president Sudhakar Desai said, “We thank the government for accepting the IVPA’s recommendation to increase the duty difference between raw and sophisticated edible oils to the government.” Desai said that this is a very bold step towards ensuring make makes in India and protecting the region from the influx of sophisticated oils, causing hurt to capacity in the vegetable oil sector.
Mehta said, “This is a winning position for vegetable oil refiners and consumers, as the low duty on crude oils will reduce the local price.”
On September 14, 2024, the original custom duty on crude soybean oil, crude oil and raw sunflower oil was increased from 0 percent to 20 percent. PTI MJH RC
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