20 percentage points increase in basic import duty on edible oils

14-Sep-2024 01:26 PM

New Delhi. Accepting the strong demand of the indigenous vegetable oil industry and the proposal of the Union Agriculture Ministry, the Central Government has increased the rates of customs duty applicable on the import of edible oils by a huge 20 percentage points.

According to a notification issued by the Revenue Department of the Union Finance Ministry, the import duty has been increased on edible oils of crude and refined category.

According to the notification, the basic import duty on crude category soybean oil, palm oil and sunflower oil was (0) percent till now, but now 20 percent will be applicable.

Similarly, the basic import duty on refined category edible oils has been increased from 12.5 percent to 32.5 percent.

Although the refined category includes RBD palm oil and palmolein, refined sunflower oil and refined soybean oil, but mainly RBD palmolein is imported in India.

This increase in import duty on edible oils is likely to provide relief to the indigenous oilseed producers and crushing-processing industry.

It is noteworthy that the harvesting and preparation of Kharif oilseed crops and especially soybean is likely to pick up soon, whereas its wholesale market price has already fallen to a level much below the government support price.

In the season of strong supply, the price was expected to fall even further. Soybean producers of both the top producing states - Madhya Pradesh and Maharashtra were very worried and troubled seeing the falling market price.

The increase in customs duty will increase the price of edible oils in the domestic sector and farmers will get an opportunity to get a better price for their oilseeds. However, common consumers may face some difficulty.