North India Statesman
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News India Live, Digital Desk: Central government on Friday Crude Palm Oil, The basic customs duty on raw soybean oil and raw sunflower oil was reduced to 10 percent. This step has been taken for the purpose of reducing the retail prices of edible oils and the protection of domestic processors. Earlier, the fee on these three crude edible oils was 20 percent. India imports more than 50 percent of its domestic edible oil requirement. India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October), priced at Rs 1.32 lakh crore. In this regard, the Finance Ministry issued a notification with immediate effect on Friday.
Union Food Secretary on contact Sanjeev Chopra said that the government has reduced the basic customs duty on crude food oils from 20 percent to 10 percent. BV Mehta, Executive Director of Industry Body Solvent Extractors Association of India (SEA), said that the basic customs duty on crude palm oil, crude soybean oil and raw sunflower oil has been reduced from 20 percent to 10 percent. Effective import duty on these three products (including basic customs and other duty) would now be 16.5 percent, while earlier it was 27.5 percent.
The basic customs duty on refined oil remains unchanged at 32.5 percent. Currently the effective fee on refined oils is 35.75 percent. The decision has been welcomed by the Industry Body SEA and the Indian Vegetable Oil Producer Association (IVPA). They are demanding to increase the fee difference between raw and refined edible oils for the protection of domestic processors.
In a statement released late night, SEA President Sanjeev Asthana said, “The government’s decision to increase the fee difference between raw and refined oils from 8.25 percent to 19.25 percent is an adventure and time taken. He said that reduction in fees on crude oil will help in reducing domestic prices, which will benefit consumers.
Mehta said that the import of refined palm oil has recently increased, as it is cheaper than raw palm oil. India imports palm oil from Malaysia and Indonesia. Soybean oil comes from Brazil and Argentina.
IVPA President Sudhakar Desai said, “We thank the government for accepting the recommendation of IVPA to increase the fee difference between raw and sophisticated edible oils to 19.25 percent.” Desai said that this is an important bold step towards ensuring Make in India and protecting the region from the flood of refined oils, causing damage to the capacity of the vegetable oil sector.
Mehta said, “This is a winning position for vegetable oil refiners and consumers, as the reduced fee on crude oils will reduce the local price.” On September 14, 2024, the basic customs on crude soybean oil, crude palm oil and raw sunflower oil were increased from 0 percent to 20 percent.
