Government Cuts Duty on Crude Oils to Boost Domestic Refiners

The Indian government reduced the basic custom duty on crude oils to 10%, a move praised by industry bodies SEA and IVPA. This aims to discourage imports of refined oils and protect domestic refiners, with expectations to lower consumer prices and reinvigorate the domestic sector.

The Indian government has made a strategic decision to slash the basic custom duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 20% to 10%. This initiative is receiving commendation from the Solvent Extractors Association of India (SEA) and the Indian Vegetable Oil Producers' Association (IVPA), as it is set to curb the influx of refined oil imports and safeguard the interests of domestic refiners.

President of SEA, Sanjeev Asthana, emphasized that the move to elevate the duty difference between crude and refined edible oils to 19.25% is timely, aiming to boost demand for crude palm oil and fortify the domestic refining sector. The adjustment is projected to stabilize edible oil imports without driving prices up.

Meanwhile, IVPA President Sudhakar Desai acknowledged the government's responsiveness to their recommendation, noting that the revised duty differential represents a pivotal step in promoting 'Make in India' and shielding the vegetable oil sector from refined oil influxes. This change is expected to lower local prices and support domestic economic activity.

(With inputs from agencies.)