Government Increases Import Duty on Crude and Refined Edible Oils by 20% to Restrict Cheap Imports
The central government has increased the customs duty on crude and refined edible oils. The Indian edible oil industry had been demanding this for some time to protect itself from the impact of cheap imports.
The central government has increased the customs duty on crude and refined edible oils. The Indian edible oil industry had been demanding this for some time to protect itself from the impact of cheap imports. According to the Ministry of Finance’s notification, the basic customs duty (BCD) on crude palm oil, crude soybean oil, and crude sunflower oil has been raised from 0% to 20%. Similarly, the BCD on refined palm oil, refined soybean oil, and refined sunflower oil has been increased from 12.5% to 32.5%.
With this revision, the effective duty on these crude oils and refined oils will rise from 5.5% to 27.5% and from 13.75% to 35.75%, respectively. The notification states that these changes in duty will come into effect starting Saturday.
Union Minister of Commerce and Industry Piyush Goyal remarked that while the government's decisions will boost exports of Basmati rice and onions, they will also reduce the import of edible oils. These steps, taken by the Modi government, will enhance both the production and sales of our farmers' crops, ensuring substantial benefits for consumers as well.
It is noteworthy that due to the cheap import of edible oils, the prices of oilseed crops like soybean have dropped to the lowest levels in a decade, and farmers are receiving prices below the minimum support price (MSP). Farmers in oilseed-producing states like Madhya Pradesh have been continuously protesting over the decline in soybean prices and the lack of government support.
