New Delhi, Sept 25 (NVI) The government of India has cut the basic import duty on crude and refined edible oils, including palm oil, soy oil and sunflower oil.
Vegetable oil prices in India have risen nearly 20% over the past year, and the duty cut is expected to lower prices and boost consumption during major religious festivals from September to November with sweets, snacks and fried foods.
Internationally, increased Indian demand would support benchmark Malaysian palm oil and US soy oil futures, traders said.
The basic import duty on crude palm oil and crude soy oil has been reduced to 5% from 10%, while the duty on refined palm oil and refined soy oil has been cut to 27.5% from 32.5%, the notification said.
The import duty on crude sunflower oil has been cut to zero from 10%, while the duty on refined sunflower oil has been reduced to 22.5% from 32.5%, it said.
Apart from the basic customs duty, edible oil imports into India also carry the Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
Crude palm oil and crude soy oil will attract a total import duty of 11%, down from 16.5%, while crude sunflower oil will attract a 5.5% duty, down from 16.5%.
India meets nearly two-thirds of its vegetable oil demand through imports, mainly palm oil, soy oil and sunflower oil from Malaysia, Indonesia, Argentina, Russia and Ukraine.
Sunflower oil will be the biggest beneficiary of the duty cut, making it more attractive for refiners and potentially taking some demand away from soy oil and palm oil, said Aashish Acharya, vice president at Patanjali Foods Ltd (PAFO.NS). (NVI)
