The Cabinet Committee on Economic Affairs (CCEA) is expected to consider Food Ministry's proposal soon of increasing import duty on refined edible oil to 10 percent from the current 7.5 percent in order to discourage cheaper inflows of refined oils from overseas for protecting domestic refiners and farmers. Last year, Food Ministry's proposal was rejected by the CCEA amid fears of its impact on elevated inflation.
Meanwhile, the negative inflation in edible oils for a fifth straight month in November as compared with a 6.9% headline inflation during the same period, has encouraged the government for a duty hike in edible oil. On the other hand, the agriculture ministry feels the duty structure on edible oils should be such that it maintains domestic prices in accordance with the movement of prices globally.
India imports more than a half of its annual edible oil requirements. Despite, the world's largest edible oil buyer, India impose low import duties. However, major exporters such as Indonesia and Malaysia offer duty incentives on supplies of refined edible oils to promote their local refiners. In November, Indian refined oil imports shot up by 172% in a year to 2,08,076 tonnes, while crude oil purchases from overseas were up by only 20% at 719,035 tonnes.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: