INDUSTRY

Customs Duty on crude palm oil, soyoil and sunflower oil cut to cool overheated prices

The government has slashed base Customs Duties on palm oil, soyoil and sunflower oil to ease elevated level of edible oil prices, according to the Finance Ministry. 


The base import tax on crude palm oil has been reduced to 2.5 per cent from 10 per cent, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5 per cent from 7.5 per cent, the ministry has said in a notification issued late on Friday. Standard rate of duty on refined palm oil, refined soybean oil and refined sunflower oil has been reduced to 32.5 per cent. 


The notification has come into effect from Saturday. Direct value of benefits expected to be passed on to the consumers in terms of duties given up by the government is Rs 4,600 crore. 


“The duty cuts already made amount to an estimated Rs 3,500 crore in a full year. With the current or latest reduced import duty worth Rs 1,100 crore in full year, total direct value of benefits expected to be passed on to the consumers in terms of duties given up by the government is Rs 4,600 crore,” the Ministry of Consumer Affairs, Food and Public Distribution has said in a statement. 


With the reduction, the effective duty on crude palm oil, crude soyoil and crude sunflower oil will come down to 24.75 per cent, whereas effective duty on refined palm oil, soyoil and sunflower oil will be 35.75 per cent, Solvent Extractors’ Association of India (SEA) Executive Director B V Mehta has said. 


The fresh round of cuts could bring down the retail prices by Rs 4-5 per litre, he said. It was also generally seen that prices hardened in the international market after India reduced its import duty. So, the real impact could only be Rs 2-3 per litre, Mr Mehta added. 

Report By