Government reduces import duty on refined soybean, sunflower oil to 12.5 percent

New Delhi. The government has reduced the import duty on refined soybean and sunflower oil from 17.5 percent to 12.5 percent. In a notification issued on Thursday by the Finance Ministry, it has been said that this step has been taken to increase domestic availability and control prices. India usually imports ‘crude’ soybean and sunflower oil, rather than refined. Despite this, the government has reduced the import duty on refined soybean and sunflower oil. With this reduction, the effective duty on refined edible oils stands at 13.7 per cent. It also includes Social Welfare Cess.

The effective duty on all major crude edible oils is 5.5 per cent. B V Mehta, executive director of the Solvent Extractors Association of India (SEA), said the move may have some temporary impact on market sentiment, but it will not increase imports. Mehta said in the statement, “Generally, the government wants to keep the prices of edible oils under control. Import of refined soybean and sunflower oil is not economically viable despite the low duty differential between crude and refined soybean and sunflower oils.

This move will have a temporary impact on market sentiment.” Currently, there is no import of refined soybean and sunflower oil. According to SEA, sowing has been delayed due to a week’s delay in the onset of monsoon over Kerala. Mehta said, “The Meteorological Department has predicted a near-normal monsoon. However, El Nino has not been completely ruled out and could lead to setbacks in the prospects of a normal monsoon, affecting the domestic availability of vegetable oils for the kharif crop and the next oil year 2023-24. It is dependent on imports to meet its demand-supply gap in oils. India meets 60 percent of its edible oil requirement through imports.

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