Govt reduces import duty on crude edible oil by 10%

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The central government on Friday lowered the basic import tax on crude edible oils, it said in a notification. The duty change would be effective from May 30, the notification said.

The decision is expected to stimulate domestic demand, lead to increased imports of palm oil, soyoil, sunflower oil and expected to lower edible oil prices.

According to a government notification reviewed by Reuters, India has reduced the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20% to 10%.

With the inclusion of the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the effective total import duty on these oils will now drop to 16.5%, down from the previous 27.5%.

*With Agency Inputs