The Government reduces Basic Customs Duty (BCD) on major imported crude edible oils to lower landed costs, facilitate transmission of benefits through the domestic supply chain, and provide relief to consumers.
The Government of India has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers, and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.
The BCD on Crude Sunflower Oil has been reduced from 10% to nil, while the BCD on Crude Soybean Oil and Crude Palm Oil has been decreased from 10% to 5%. Simultaneously, the Government has reduced the applicable BCD on the respective refined edible oils while maintaining an import duty differential of 19.25% between crude and refined edible oils.
The reduction in BCD on crude edible oils is expected to lower their landed cost, facilitating the transmission of benefits through the domestic supply chain. The measure is intended to provide relief to consumers while contributing to the broader objective of containing food-price and overall inflationary pressures.
In addition, the Government has issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit arising from the reduction in import duty is passed on to consumers. Industry stakeholders have been requested to immediately revise their Price to Distributors (PTD) and Maximum Retail Price (MRP) in accordance with the reduction in landed costs.
The Government will continue to monitor developments in international edible oil markets and domestic prices and will take appropriate measures, as necessary, to safeguard the interests of consumers while maintaining a balanced policy environment for farmers and the domestic edible oil industry.
Source:
Press Information Bureau
