Government Halves Import Duty on Crude Edible Oils to Combat Inflation

The Indian government has halved the Basic Customs Duty on major imported crude edible oils from 20% to 10% to address the escalating prices following a recent duty hike. This move aims to lower retail prices, stimulate domestic refining, and mitigate food inflation, benefiting consumers and farmers alike.

In a decisive move to counter rising inflation, the Indian government has slashed the Basic Customs Duty on key imported crude edible oils from 20% to 10%.

The reduction, announced by the Ministry of Consumer Affairs, targets crude sunflower, soybean, and palm oils, narrowing the import duty differential between crude and refined edible oils from 8.75% to 19.25%.

This strategic decision seeks to alleviate the burden of surging edible oil prices, which have escalated due to a recent duty hike and rising global market prices. By reducing the import duty on crude oils, the government aims to cut the landed cost and retail prices of edible oils, providing consumer relief and supporting domestic inflation control.

The revamped duty structure is expected to discourage refined oil imports, bolstering domestic refining capacities and ensuring fair compensation for local farmers. The government has urged edible oil industry stakeholders to pass on the benefits of this duty reduction to consumers immediately. Industry players have been instructed to adjust the Price to Distributors (PTD) and Maximum Retail Price (MRP) accordingly and to submit updated brand-wise MRP data weekly.

This policy shift follows a comprehensive review of the economic impact of last year's duty increases, which contributed to significant inflationary pressures. The initiative represents a collaborative effort between the government and industry to maintain price stability and domestic productivity in India's edible oil market.

(With inputs from agencies.)