Need to increase duty difference between crude and refined edible oils

22-May-2025 08:02 PM

Mumbai. In India, refined edible oil imports mainly consist of RBD palmolein, while crude palm oil, soybean oil, and sunflower oil are imported under the crude category.

Currently, the difference in customs duty between crude and refined edible oils stands at only 7.5 percent. However, the Solvent Extractors Association of India has urged the government to double this difference to at least 15 percent.

The Indonesian government is promoting exports of refined palm oil, particularly RBD palmolein, by keeping export duties and levies on these products relatively low.

This makes refined oils more competitively priced compared to crude oils. As a result, large volumes of RBD palmolein are being imported into India, affecting the domestic refining industry. Indian refiners are unable to fully utilize their installed capacities due to this trend.

The association argues that increasing the duty difference to 15 percent would offer a level playing field for domestic refiners and support the indigenous refining sector.

It has raised this issue with the Union Food Minister and Food Secretary, and the government is reportedly giving serious consideration to the proposal.

Additionally, the association highlighted a recent Supreme Court decision that may benefit the edible oil industry.

The court ruled that the extraction of soybean oil from soybeans constitutes a manufacturing process and that soybean oil is not an agricultural commodity.

This clarification is expected to support businesses in the sector dealing with regulatory or classification issues.

The association has also appealed to the central government to lift the ban on the export of de-oiled rice bran. It stated that the ban is causing significant losses to millers and processors, particularly in states like West Bengal and Odisha.