In a move aimed at curbing domestic edible oil prices and easing inflationary pressures, the Government has reduced the Basic Customs Duty (BCD) on key imported crude edible oils amid a sharp rise in global prices.
According to an announcement issued by the Ministry of Consumer Affairs, Food and Public Distribution on Thursday, the BCD on Crude Sunflower Oil has been reduced from 10 per cent to nil, while the duty on Crude Soybean Oil and Crude Palm Oil has been lowered from 10 per cent to 5 per cent.
The Ministry said the decision is intended to provide relief to consumers by reducing the landed cost of imported crude edible oils and facilitating the transmission of these benefits through the domestic supply chain.
To maintain the existing incentive for domestic refining, the Government has also reduced the applicable customs duty on refined edible oils while retaining an import duty differential of 19.25 percentage points between crude and refined edible oils.
The Ministry noted that the measure is expected to help moderate retail edible oil prices and contribute to the broader objective of containing food inflation and overall inflationary pressures in the economy.
To ensure that consumers benefit from the reduction in import duties, the Government has issued an advisory to edible oil associations and industry stakeholders, urging them to pass on the full benefit of the duty cut to end-users without delay.
Officials said the move comes at a time when international edible oil prices have witnessed a significant increase, adding pressure on domestic markets and household budgets.
