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CCEA gives nod to raise import duty on crude edible oils from 0% to 2.5%

18 Jan 2013 Evaluate

While retaining the present import duty of 7.5% on all refined edible oils, the Cabinet Committee on Economic Affairs (CCEA) has given its approval for the enhancement of import duty on crude edible oils from 0% to 2.5%.

CCEA has taken this step with the objective to shore up the price payable to farmers for Fresh Fruit Bunches of oil palm, which is linked to the landed price of Crude Palm Oil (CPO). The price payable to farmers will increase by around Rs 150 per MT with an enhanced duty on CPO.

Though the impact of enhanced duty on prices of edible oils would be negligible at less than Rs 1 per kg, the price may be further moderated on account of the huge stocks of palm oil in Malaysia and Indonesia, which may force these countries to lower the currently levied export duty, in an effort to boost their exports.

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