Centre Slashes Customs Duty on Sunflower, Soybean, and Palm Oils Starting September 24

The Indian government has announced a significant reduction in import duties on edible oils, effective from September 24. The basic customs duty (BCD) on crude soybean oil and palm oil has been slashed from 10% to 5%, while the duty on refined soybean oil and palm oil has been reduced from 32.5% to 27.5%. Additionally, the import duty on crude sunflower oil has been abolished, and the tax on refined sunflower oil has been lowered from 32.5% to 22.5%, aiming to alleviate the rising inflation in edible oils.

This policy shift aims to reduce the immediate costs of edible oil for consumers. While the reduction in import duties is expected to lower prices, the extent to which this will translate to lower retail prices remains uncertain, contingent upon various factors including international oil prices, freight costs, and inventory levels. With the festive season approaching, the government and industry stakeholders are keen to ensure adequate supply and manage heightened consumer demand, particularly in sweets, snacks, and food service sectors.