 "edible oil")
Ministry of Consumer Affairs, Food and Public Distribution has announced a reduction in the import duty on refined soyabean oil and sunflower oil by 5 percentage points, bringing it down from 17.5 per cent to 12.5 per cent.
The step is consistent with the government's intent to curb the rise in edible oil prices in the country. The government issued an order to this effect on Wednesday. These directions will remain in force until 31st March 2024.
Since the basic import duty plays a significant role in the landed cost of edible oils, the latest update in import duty rates is likely to support the government's plan of keeping the edible oil prices under control.
The move is expected to ease prices in the retail market and comfort consumers. The import duties were last revised in October 2021 when they were brought down to 17.5 per cent from 32.5 per cent. This was done considering the high international prices that were also reflected in domestic retail prices.
Edible oil is a key component in Indian households and government closely monitors their prices to ensure adequate availability to consumers, the govt notification said.
Talking about the reduction in import duties, Executive Director of the Solvent Extractors’ Association of India (SEA), B V Mehta told Mint, “Even with lesser duty difference between crude and refined soya and sun oils, chances of shipment of refined soy oil or sunflower oil is not commercially viable but may have some temporary sentimental impact on the market."
Citing data from SEA, a Mint report said that compared to the last month, India's vegetable oil imports for April went down by 10 per cent. Palm oil imports fell 31 per cent and reached 505,000 tonnes.
On the other hand, Soyabean oil imports went up by 1 per cent and reached 262,000 tonnes. Import of sunflower oil registered a big jump of 68 per cent and reached 249,000 tonnes, the report added.
