New Delhi— In a move aimed at curbing rising food inflation, the Centre has slashed the basic customs duty on crude edible oils—including sunflower, soybean, and palm oils—from 20% to 10%, according to a statement issued Wednesday.
The decision is expected to lower retail prices and reduce inflationary pressure by bringing down the landed cost of imported crude oils. It also widens the import duty gap between crude and refined oils from 8.75% to 19.25%, encouraging greater use of domestic refining capacity and curbing refined oil imports.
“This adjustment addresses the sharp spike in edible oil prices triggered by the September 2024 duty hike and rising global prices,” said the Ministry of Consumer Affairs, Food & Public Distribution. The ministry has issued an advisory to industry stakeholders, urging them to pass on the full benefit of the duty cut to consumers.
A recent meeting chaired by the Department of Food and Public Distribution emphasized immediate action from major edible oil associations to reduce prices and update maximum retail prices (MRPs) accordingly. The government has provided a format for weekly submissions of brand-wise MRP data to monitor compliance.
The revised duty structure is designed to shift demand toward crude palm oil and bolster domestic refining, ensuring fair compensation for farmers while protecting consumers from inflated retail costs.
The policy change follows a thorough review of last year’s price surge, which contributed significantly to food inflation. The government hopes this timely intervention will stabilize the edible oil market and offer relief to Indian households. (Source: IANS)
