Request to reconsider the decision to cut import duty on crude palm oil

18-Jun-2025 12:56 PM

Visakhapatnam. The Chief Minister of Andhra Pradesh has urged the Central Government to reconsider the significant reduction in import duty on crude edible oils, particularly crude palm oil. In a letter addressed to the Union Home and Cooperation Minister, the Chief Minister expressed concern that the cheaper import of crude palm oil could lead to a fall in the prices of fresh fruit bunches (FFB) of oil palm in the state, affecting the profitability of local producers.

This concern was earlier raised during a meeting between the Union Commerce and Industry Minister and the Chief Minister.

On June 17, a delegation of Telugu Desam Party (TDP) MPs also met the Union Home Minister and submitted the Chief Minister’s letter, requesting a review of the import duty decision.

The Central Government had issued a gazette notification on May 30, reducing the basic import duty on crude palm oil, soybean oil, and sunflower oil from 20 percent to 10 percent, with immediate effect.

The Chief Minister’s letter highlighted that implementing such a duty cut during the peak plantation season could severely impact the success of the National Mission on Edible Oils-Oil Palm. It may reduce the income of oil palm growers and dampen the enthusiasm of those planning new plantations.

Andhra Pradesh is a leading state in palm oil production, and maintaining the confidence of its producers is seen as vital for the sector’s continued growth.