Govt denies extending lower import duty on edible oils till 2025

India had reduced import duty on edible oils in June this year.

The Ministry of Finance on December 23 denied reports claiming that the government has extended the imposition of lower import duty on palm, soybean and sunflower oils till March 2025.

Calling the reports "erroneous", the finance ministry said the government has only "extended current effective zero import duty" on masur dal or lentil till March 2025.

The decision has likely been taken to ensure steady supply of the key pulse from international market and keep domestic prices under check.

"It has come to notice that some sections of the media have erroneously reported that the government has extended lower import duty for palm, soybean and sunflower oils till 31.03.2025. It is categorically clarified that the government extended the validity period of import duty exemption on Masur Dal only, by one year," the finance ministry stated in its clarification.

Also Read | Edible oil industry body SEA urges govt to hike duty difference between crude & refined palm oil

According to an official notification, the exemption of zero import duty on masur as well as agri-infra cess of 10 per cent has been extended till March 2025. This exemption on masur was valid till March 2024. This exemption on masur was valid till March 2024.

"In some of the pulses, we don't produce as much as we consume. For stability of import policy, the current exemption has been extended on masur till March 2025 so that farmers of the producing countries get clear signal from India and plan their sowing," Consumer Affairs Secretary Rohit Kumar Singh told PTI.

The basic import duty on masur was reduced to zero in July 2021, while the exemption from 10 per cent agri-infrastructure cess was given in February 2022. Since then, it was extended multiple times and currently was valid till March 2024.

Meanwhile, the lower import duties on edible oils will continue till at least March 2024. The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5 percent to 12.5 percent in June this year.

Notably, India is the world’s second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its needs through imports.

With PTI inputs