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Government keeps existing lower import duty on edible oil until March 2025

17 Jan 2024 Evaluate

The government has decided to continue with existing concessional duty rates on imports of crude and refined edible oils - palm, soyabean and sunflower - by one year till March 31, 2025. Import duty on refined soyabean oil and sunflower oil was 12.5%. In June last year, the government had reduced basic import duty from 17.5% to 12.5%.

The basic import duty is an important factor which impacts the landed cost of edible oils which in turn affects the domestic prices. Reduction in import duty on refined sunflower oil and refined soyabean oil will benefit the consumers, as it will help in easing the domestic retail prices. 

The import duties on refined soyabean oil and refined sunflower oil were last reduced from 32.5% to 17.5% in October, 2021. This was done as during the year 2021, the international prices were very high, which was getting reflected in the domestic prices as well. The Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution is closely monitoring the prices of edible oil in the country and ensuring its adequate availability to consumers.

India imports palm oil mainly from Indonesia and Malaysia, and a small quantity of crude soft oil, including soyabean from Argentina. Sunflower oil is imported from Ukraine and Russia.

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