India is the world’s largest importer of edible oil as it meets 60 pc of its requirement through imports.
Representational Image (file photo)
The Union Government has extended the reduction in customs duty on edible oil imports by a year in order to keep prices in check.
The reduced duty, which was set to end in March 2024, will continue till March 2025, an official notification from the government showed on Friday.
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Initially, in June the government lowered the basic customs duty on crude palm oil, crude sunflower oil and crude soyoil from 17.5% to 12.5% till March 2024 as prices were spiraling out of control. This date for the reduced duty to be applicable has now been extended to March 2025.
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The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5% to 12.5%.
Notably, the basic import duty is an important factor that impacts the landed cost of edible oils which in turn affects domestic prices. Reduction in import duty will benefit the consumers, as it will help in easing domestic retail prices.
India is the world’s largest importer of edible oil as it meets 60% of its requirement through imports.
The country buys palm oil mainly from Indonesia, Malaysia and Thailand while it imports soybean and sunflower oil from Argentina and Brazil.
According to the latest data released by the government on inflation, the retail inflation rose at its fastest pace in three months in November, largely due to a spike in food prices.
Food inflation, which accounts for nearly half of the overall consumer price basket, was 8.7% in November, against 6.61% reported the previous month.
Prices of cereals rose by 10.27% and vegetables by 17.7% in November on a year-on-year basis. Pulses were up by 20.23%, spices by 21.55% and fruit prices were up 10.95% last month.
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