In order to protect the domestic refining industries, Solvent Extractors' Association of India (SEA) has urged government to raise import duty on refined palm oil to 40% from the current 32.5%. The refined palmolein is cheaper by $50 per tonne currently. The main reason for rise in palmolein imports is the encouragement given by exporting countries (Malaysia and Indonesia) to their industry. They have kept high export duties on CPO and low export duty on palmolein (finished product).
Effective September 14, 2024, the Basic Customs Duty on Crude Soybean Oil, Crude Palm Oil, and Crude Sunflower Oil has been raised from zero to 20%, making the effective duty on crude oils to 27.5%.
Additionally, the Basic Customs Duty on Refined Palm Oil, Refined Sunflower Oil, and Refined Soybean Oil has been increased from 12.5% to 32.5% making the effective duty on refined oils at 35.75%. India meets more than 50% of its edible oil requirement through imports.
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