Centre slashes import duty on crude edible oils to curb inflation

In a major political step aimed at containing food enlargement and enhancing local refining, the center of the basic customs duty (BCD) reduced edible ore oils – including raw sunflower, soybeans and palm oils – from 20 % to 10 %. The decision raises the effectiveness of the obligatory difference between the oils suitable for rough and refined eating from 8.75 % to 19.25 %, making repeated oil imports less attractive.

It is expected that the revised fee structure, which was announced after a comprehensive review of edible oil prices, will reduce the cost of raw oils that have fallen and reduced retail prices for consumers. The government had previously raised its duties in September 2024, a step, in addition to the high international prices, which led to a sharp rise in edible local oil rates and contributed significantly to food enlargement.

“This amendment aims to stabilize edible oil prices and ensure that consumers get fully benefit from the low duty,” said the Ministry of Distribution in the field of food and general distribution (DFD), which held a high -level meeting with edible oil societies and stakeholders in the industry earlier this week. During the meeting, industry players were advised to immediately review the price to distributors (PTD) and the maximum retail prices (MRP) in line with low import costs.

The government has requested eating oil societies to direct its members to pass the benefit to consumers without delay. The updated MRP papers should share a weekly brands with DFPD, which have already released a standard data collection format.

Officials indicated that the expanded differentiation of 19.25 % will help to redirect the demand for eating oils – especially raw palm oil – which enhances the ability to refine local with inhibition of imports of repeated oils such as the two miles. This shift is expected not only to enhance the authority of local refineries, but also maintain a fair prices for farmers.

“The duty to import oils directly affects the cost of which has been dropped and thus affects local prices. By reducing the duty of raw oils, we support both consumers and the local refining industry.”

The center emphasized that the transfer of these benefits in a timely manner through the supply chain is very important. It is expected to reduce retail prices in the coming weeks if the industry is compatible with the consultant, which provides relief that affects the need for families that struggle with high food prices.