Import Duty Reduced On Crude Edible Oils To 10%

(MENAFN- KNN India) New Delhi, Jun 12 (KNN) In a significant move to curb rising edible oil prices, the government has reduced the Basic Customs Duty (BCD) on crude edible oils-soybean, sunflower, and palm-from 20 per cent to 10 per cent.

This step, announced on Wednesday, is expected to lower the overall cost of these oils and provide relief to consumers.

The Food Ministry stated that the reduction in duty will increase the gap between the import duties on crude and refined edible oils from 8.75 per cent to 19.25 per cent.

This widened differential is designed to promote domestic refining by making crude oil imports more attractive than refined oil imports.

As a result, the move is expected to boost capacity utilisation in the local refining industry and decrease India's dependence on imported refined oils.

The ministry further noted that the decision was made in response to a spike in edible oil prices caused by the September 2024 duty hike and rising international market rates.

To ensure the benefits reach consumers quickly, the Union Food Ministry has directed edible oil industry associations to immediately reduce prices.

They are required to update their Price to Distributors (PTD) and Maximum Retail Price (MRP) accordingly. A reporting format has also been issued to companies to track compliance.

The ministry emphasised the importance of passing on the reduced costs throughout the supply chain so that retail prices reflect the duty cut.

This measure is part of the government's broader efforts to manage inflation and ensure essential commodities remain affordable for the general public.

(KNN Bureau)

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