Your cooking oil in India should become cheaper soon
What's the story
In a major move, the Indian government has slashed the Basic Customs Duty (BCD) on crude edible oils such as soybean, sunflower, and palm oil from 20% to 10%.
The decision is aimed at reducing the burden of rising edible oil prices on consumers.
The duty gap between crude and refined edible oils has also been widened from 8.75% to 19.25%.
Step
Advisory to edible oil associations
The government's decision comes as a response to the rising edible oil prices, which have been affected by a duty hike in September 2024 and rising international market rates.
The Centre has issued an advisory to edible oil associations and industry stakeholders, requesting them to pass on the benefits of this reduced duty directly to consumers.
Domestic impact
Encouraging domestic refining capacity utilization
The government said that a 19.25% duty differential between crude and refined oils would encourage utilization of domestic refining capacity and reduce imports of refined oils.
The import duty on edible oils is a key factor affecting the landed cost of these products and their domestic prices.
By slashing the import duty on crude oils, the government hopes to lower landed costs and retail prices, giving consumers some relief while also helping cool overall inflation.