Govt cuts basic customs duty on crude edible oils to ease prices

This adjustment seeks to tackle the rising edible oil prices triggered by the September 2024 duty hike and simultaneous increases in global market rates.The central government has reduced the Basic Customs Duty on major imported crude edible oils, including sunflower, soybean, and palm oils, from 20% to 10%, according to a statement from the Ministry of Consumer Affairs, Food and Public Distribution.This adjustment seeks to tackle the rising edible oil prices triggered by the September 2024 duty hike and simultaneous increases in global market rates. The duty differential between crude and refined edible oils has been adjusted to 19.25%, a move intended to boost domestic refining capacity utilization and curb refined oil imports, officials noted.As import duty on edible oils significantly influences landed costs and domestic prices, lowering the duty on crude oils aims to reduce both landed costs and retail prices. The government expects this to benefit consumers and support farmers through enhanced domestic refining and fair compensation. Industry stakeholders have been urged to pass on the savings to consumers, with associations requested to submit weekly updated brand-wise Maximum Retail Price (MRP) and Price Trade Discount (PTD) data.
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