Centre reduces basic import duty on edible oils

The Government has reduced the basic import duty on edible oils to ensure their availability to consumers at affordable prices. The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5 percent to 12.5 percent. This came into effect today and will remain in force till the 31st of March next year. The Consumer Affairs, Food, and Public Distribution Ministry said, a 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 Ministry said, it is closely monitoring the prices of edible oil in the country and ensuring its adequate availability to consumers.The import duties on refined soyabean oil and refined sunflower oil were last reduced from 32.5% to 17.5 per cent 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.

As per the latest data by the Solvent Extractors’ Association of India(SEA), India’s April import of vegetable oils (edible and non-edible) was down 10% on month, while palm Oil import fell 31% to 505,000 tonnes. However, soybean oil import was up 1% to 262,000 tonnes and Sunflower oil import went up 68% to 249,000 tonnes because of over supply at the lowest international price compared to soybean oil and crude palm oil. India is the world’s largest buyer of vegetable oils and relies heavily on imports for about 60% of its annual consumption of 24 MT. Out of the total imports of 14 MT India’s edible oil annually, the share of crude and refined oil is 75% and 25% respectively.