In order to bring down the prices of cooking oils and protect domestic processing industries, the government has cut the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from the earlier 20 per cent. It has come into force with immediate effect. India imports more than 50 per cent of its domestic edible oil requirement.
The effective import duty (basic custom duty plus other charges) on these three products will now be 16.5 per cent as against the earlier 27.5 per cent. The effective duty on refined oils is 35.75 per cent.
Both Solvent Extractors Association of India (SEA) and the Indian Vegetable Oil Producers’ Association (IVPA) have welcomed the decision. This will help the domestic industry utilise its refining capacity. The move will also help reduce the retail prices of cooking oils. India imports palm oil from Malaysia and Indonesia. The basic custom duty on refined oils remains unchanged.
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