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Govt reduces basic import duty on refined soybean, sunflower oils to 12.5%

16 Jun 2023 Evaluate

The Food Ministry in a notification said that the basic import duty on refined soybean and sunflower oils has been reduced to 12.5 percent from 17.5 percent with effect from June 15 to boost domestic availability and check prices. This will remain in force till March 31, 2024. Usually, India imports 'crude' soybean and sunflower oils, and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils.

With this reduction, the effective duty on refined edible oils stands at 13.7 percent, including cess on social welfare. The effective duty on all major crude edible oils is 5.5 percent. the Food Ministry said the basic import duty is an important factor, which impacts the landed cost of edible oils, which in turn affects the domestic prices. The cut in import duty on refined sunflower and soybean oils will benefit the consumers, as it will help in easing the domestic retail prices.

It added that the decision is expected to augment the earlier measures taken by the government to reduce the prices of edible oils in the domestic market. It was in October 2021, the import duty on these two edible oils was 32.5-17.5 percent at a time when the international prices were very high, which was getting reflected in the domestic prices as well. The ministry also said it is closely monitoring the prices of edible oil in the country and ensuring its adequate availability to consumers.

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