1 hr ago
Edible Oil Duty Cuts May Halt Festive Retail Price Hikes
The government lowered taxes on imported cooking oils.
This could make it cheaper for companies to bring oil into India.
Companies had been considering raising shop prices by 7–8%.
They may now delay those increases during the October–November festival season.
Cooking oil had become more expensive because shipping, insurance and currency costs rose.
Some exporters are also sending more oil to make biofuel.
India buys more than half of its cooking oil from other countries.
The duty cuts are meant to help control prices and support demand.
India cut import duties on several crude and refined edible oils to ease domestic prices.
The reductions may lead companies to defer planned 7–8% retail price increases during the October–November festive period.
Landed costs had risen 8–11% because of freight, insurance, currency and geopolitical pressures, along with biofuel demand.
Effective duty on crude palm and soybean oils fell to 11%, while crude sunflower oil duty dropped to 5.5%.
India imports more than 58% of its edible oil needs, with retail prices remaining above year-earlier levels.
- Who
- The Indian government, edible oil companies, industry associations and consumers are affected.
- What
- The government reduced import duties on crude and refined edible oils, potentially delaying planned retail price increases.
- Where
- India, including edible oil imports from countries such as Indonesia and Nepal.
- When
- The decision was announced on Wednesday; the measures are intended to affect the October–November festive period. Retail prices cited in the report were recorded on Thursday.
- Why
- To contain domestic edible oil prices, reduce the impact of higher import costs and support consumption during the festive season.
Key facts
- Crude palm and soybean duty
- Effective import duty reduced from 16.5% to 11%.
- Crude sunflower duty
- Effective import duty reduced from 16.5% to 5.5%.
- Refined soybean and palm duty
- Effective import duty reduced from 35.75% to 30.25%.
- Planned retail increases
- Companies had proposed price hikes of about 7–8%.
- India’s import dependence
- More than 58% of annual edible oil requirements are imported.
- Annual imports
- India imports roughly 16 million tonnes of edible oils annually.
- Price comparison
- Mustard, soybean and palm oils were 8%, 14% and 16% more expensive than a year earlier, respectively.
Quotes
Akshay Chowdhry
Group vice-president at Gemini Edible & Fats India
“This will bring respite to the consumers from high prices particularly in view of the upcoming festivals. This will also stimulate the demand for edible oils and overall benefit the industry.”
financialexpress.com
“A lower domestic import duty could reduce the arbitrage advantage associated with such imports from Nepal and thereby moderate the incentive for large-scale inflows.”
financialexpress.com
Sources
Related news
India Cuts Edible Oil Duties Ahead of Festive Season
India Cuts Edible Oil Import Duties to Ease Prices
India Orders Edible Oil Firms to Pass Duty Cuts On
India Considers Lower Vegetable Oil Import Taxes Amid Inflation
India Cuts Customs Duties on Sunflower, Soybean and Palm Oils
India’s Palm and Soyoil Imports Rise in August
Nepal PM Proposes Himalayan Climate Resilience Mechanism With India, China
Nepal Says India Ties Excellent, Focusing on Pragmatic Opportunities
India Live Updates: Sikkim Landslide, Nepal Rain Warnings, Kedarnath Waste
India Faces Packed Day 7 Schedule at Asian Games
