India cuts import duties on edible oils

India has reduced basic import duties on major vegetable oils in an effort to curb rising domestic prices ahead of the peak consumption season. The biggest change applies to sunflower oil, with the basic duty on crude sunflower oil cut from 10% to zero.

The basic duty on refined sunflower oil was reduced from 32.5% to 22.5%. At the same time, duties on crude palm oil and crude soybean oil were cut from 10% to 5%, while duties on refined palm and soybean oils were reduced from 32.5% to 27.5%.

The move comes amid a sharp rise in vegetable oil prices in India. Domestic prices have increased by nearly 20% over the past year, and the government expects lower import duties to help ease prices and support consumption during the major religious festival season from September to November.

The effective import tax burden remains above the basic duty because it also includes additional levies for agricultural infrastructure development and social welfare. Including these charges, the effective duty on crude sunflower oil will fall to 5.5% from the previous 16.5%.

For crude palm and soybean oils, the effective duty will decline to 11% from 16.5%. The lower rates are expected to encourage vegetable oil imports into India and support demand on global markets.

Tags: soybean oil, India, palm oil, imports, duties, sunflower oil