The food ministry on Sunday said that concessional import duties on specified edible oils will be in place until March 2023. The Central Board of Indirect Taxes and Customs (CBIC) made this decision on August 31, 2022, in order to increase domestic supply while keeping retail prices under control.
"The concessional customs duty on edible oil imports has been extended by another 6 months, bringing the new deadline to March 2023," according to a statement released by the ministry.
The ministry also stated that domestic edible oil prices have been declining due to a drop in global prices and lower import duties.
The current duty structure on crude palm oil, RBD Palmolein, RBD palm oil, crude soybean oil, refined soybean oil, crude sunflower oil, and refined sunflower oil remains unchanged until March 31, 2023, according to the statement.
Import duties on crude palm oil, soyabean oil, and sunflower oil are currently zero. However, after accounting for a 5% agri cess and a 10% social welfare cess, the effective duty on these three oils is 5.5%. The basic customs duty on refined palmolein and refined palm oil is 12.5%, while the social welfare cess is 10%. As a result, the effective duty is 13.75 percent.
The basic customs duty on refined soyabean and sunflower oil is 17.5%, and when a 10% social welfare cess is added, the effective duty is 19.25%.
With edible oil prices at an all-time high last year, the government cut import duties on palm oil on multiple occasions to increase domestic availability. With edible oil prices at an all-time high last year, the government cut import duties on palm oil on multiple occasions to increase domestic availability.
Because India imports more than 60% of its edible oil, retail prices have been under pressure in recent months, following cues from the global market. In the 2020-21 oil marketing year, which ended in October, India imported a record amount of edible oil worth Rs.1.17 lakh crore.
