India cuts edible oil import duty to lower prices ahead of festivals

India has cut the basic import duty on crude and refined edible oils, including palm oil, soy oil and sunflower oil, the government said in a notification late on Wednesday, as it seeks to lower prices during the peak festive season.Vegetable oil prices in India have risen nearly 20% over the past year, and the duty cut is expected to lower prices and boost consumption during major religious festivals from September to November with sweets, snacks and fried foods.Internationally, increased Indian demand would support benchmark Malaysian palm oil and US soyoil futures, traders said.The basic import duty on crude palm oil and crude soyoil has been reduced to 5% from 10%, while the duty on refined palm oil and refined soyoil has been cut to 27.5% from 32.5%, the notification said.Also Read: Palm oil prices may rise as India imports jump ahead of festive season: SD Guthrie Global TradingThe import duty on crude sunflower oil has been cut to zero from 10%, while the duty on refined sunflower oil has been reduced to 22.5% from 32.5%, it said.Apart from the basic customs duty, edible oil imports into India also carry the Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.Crude palm oil and crude soy oil will attract a total import duty of 11%, down from 16.5%, while crude sunflower oil will attract a 5.5% duty, down from 16.5%.Reuters reported last week that India was planning to cut import duties on edible oils to provide relief to consumers during the festive season.”Anticipating a reduction in import duty, refiners had held back on purchases, but they will now step up imports to meet festival-season demand,” said Mumbai-based Sandeep Bajoria, ​chief executive of Sunvin ​Group, a vegetable oil ⁠brokerage.India meets nearly two-thirds of its vegetable oil demand through imports, mainly palm oil, soy oil and sunflower oil from Malaysia, Indonesia, Argentina, Russia and Ukraine.Sunflower oil will be the biggest beneficiary of the duty cut, making it more attractive for refiners and potentially taking some demand away from soyoil and palm oil, said Aashish Acharya, vice president at Patanjali Foods Ltd.

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