In a move to curb retail inflation and support India’s refining industry, the government has reduced the basic customs duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 20% to 10%. The decision, now in effect, aims to make edible oils cheaper for consumers and boost domestic processing.
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- Basic customs duty on three crude oils slashed from 20% to 10%
- Total import duty (with surcharge & cess) drops from 27.5% to 16.5%
- Refined oil duty remains unchanged at 32.5% (effective: 35.75%)
- Expected to lower retail prices of cooking oils in coming weeks
- India imports over 50% of edible oil needs; major imports from Malaysia, Indonesia, Brazil
- New duty gap: 19.25% between crude and refined oils (up from 8.25%)
- Move aligns with ‘Make in India’ and protects domestic refiners from cheap imports
- Industry bodies like SEA & IVPA had long demanded wider duty gap
- Surge in refined palm oil imports under SAFTA had hurt local refiners
- Policy shift to promote processing within India and support oilseed farmers




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