The government has taken a crucial decision to prevent the increase in edible oil prices or to keep them under control. The Central government has extended the reduced customs duty on the import of edible oil for one year. The deadline for the reduced duty to take effect has now been extended until March 2025.
To provide relief to consumers, the Narendra Modi government reduced the import duty on refined soybean and sunflower oils from 17.5% to 12.5% on June 15. Consequently, the effective duty on refined edible oils, including a social welfare cess, is 13.7%, while the effective duty on major crude edible oils is 5.5%. The reduced duty on refined soybean and sunflower oil will be in effect until March 31, 2024, according to the Union Food Ministry, which is actively monitoring edible oil prices and ensuring sufficient availability for consumers.
After the government’s announcement to reduce customs duty on edible oil, companies also reduced prices. In May 2023, in response to the government’s appeal, Mother Dairy had reduced the maximum retail price (MRP) of its edible oils sold under the ‘Dhara’ brand by 15 to 20 rupees per liter. Following that, brands like Fortune and Gemini also cut prices. The impact of the government’s decision on prices of mustard oil, sesame oil, soybean oil, crude palm oil (CPO), and palmolein is now expected to be less pronounced.
The Solvent Extractors’ Association of India (SEA) estimates that India’s import of edible oils—palm, soybean, and sunflower—is expected to reach a record 17 million metric tons (MMT) in the current year.
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