Govt Policy to Boost Domestic Refined Edible Oil Production Praised
21-Aug-2025 11:59 AM
Mumbai. The strategy formulated by the Central Government to encourage the indigenous refining industry and limit the import of refined edible oils from abroad is commendable and beneficial and it is expected to provide great relief to the refiners.
Under this strategy, the difference between the import duty on crude edible oil and refined edible oil has been increased. Earlier this difference was only 8.25 percent but from 31 May 2025 it has increased to 19.25 percent.
Its positive results have also started coming to the fore. In July 2025, the import of refined edible oil (mainly RBD palmolein) fell to only around 5 thousand tonnes, whereas 1.63 lakh tonnes of refined edible oil was imported in June 2025 and 1.36 lakh tonnes in July 2024.
With this new policy of the government, there are indications of an increase in the import of crude palm oil, soybean oil and sunflower oil in the country and Indian refiners are getting indications of an increase in imports from Indonesia and Malaysia and Indian refiners do not have to face unnecessary and fierce competition with the import of RBD palmolein from Indonesia and Malaysia. But the import of a huge amount of refined edible oils from Nepal is troubling Indian refiners. Under the SAFTA treaty, edible oils are being imported duty-free from Nepal to India, which needs to be curbed.
The government policy of discouraging the import of refined edible oils from abroad and encouraging domestic value addition is providing a good opportunity to the indigenous refining industry to increase the use of its operational capacity and this is also helping in keeping the prices of edible oils stable in the domestic market.
Sufficient production of refined edible oils within the country will create new employment opportunities and the refining industry will get a lot of relief.
India mainly imports palm oil from Indonesia, Malaysia and Thailand, soybean oil from Argentina and Brazil and sunflower oil from Russia, Ukraine and Argentina.