Increase in import duty on edible oils likely to remain intact

25-Oct-2024 04:22 PM

New Delhi. Although despite the increase in import duty on edible oils in India, the prices in the global market remain high,

due to which its import is very expensive and the difficulties of the common people have increased due to the high domestic market price, but despite this, the government has ruled out the possibility of withdrawing this duty hike immediately.

The government argues that to make the country self-sufficient in terms of edible oil-oilseeds, there is a need to maintain the current duty structure. This will ensure a better price return to the oilseed producers.

According to senior official sources, the government is aware of the rise in the global market price of some edible oils, the main reason for which is the sowing of soybean being affected due to dry weather in countries like Brazil and Argentina,

but after keeping the import duty on edible oils at the same percentage or very low level for a long time, now it has been increased by 22 percent. Domestic consumers will have to adjust with the new price.

But the officials have also stressed that the industry should not increase the price of edible oil which was imported into the country at a cheaper rate before the increase in customs duty last month.

As compared to the last one month, till October 23, there was an increase of 16 percent in the price of soybean, 12 percent in the price of sunflower and 10 percent in the price of oil palm in the global market.

It is known that on September 13, 2024, the Government of India had increased the basic import duty on crude and refined edible oils by 20 percent (229 percent including cess).

As a result, now an import duty of 27.5 percent has been imposed on crude category edible oils and 35.75 percent on refined edible oils.

Data from the Department of Consumer Affairs shows that on October 23, the average retail price of soybean oil at the all-India level reached Rs 137 per liter, sunflower oil Rs 142 per liter and palm oil Rs 123 per liter,

while a month ago these prices were running at Rs 127, Rs 129 and Rs 110 per liter respectively. The retail price of mustard oil also rose by Rs 13 from Rs 151 to Rs 164 per liter during this period.