Import duty cut on edible oils ahead of festivals | Explained
Edible oilseeds farmers view the step as an attack on their livelihood; they fear that this decision is a prelude to the proposed signing of a trade deal with United States, which is the largest producer of soybean.
The Union Government of India announced a reduction in the Basic Customs Duty (BCD) on major imported crude edible oils ahead of the upcoming festival season. The move aims to moderate domestic edible oil prices, provide relief to consumers, and mitigate inflationary pressures arising from the sharp increase in international edible oil prices.
The new BCD will be effective from September 24, with significant reductions for various types of edible oils, such as palm oil (from 10% to 5%), peanut oil (from 32.5% to 27.5%), and refined palm oil (from 32.5% to 27.5%). This duty rationalization is expected to lower the landed cost of imported edible oils and facilitate transmission of the benefit through the domestic supply chain, ultimately providing relief to consumers.
Brief written by urgent.news from The Hindu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
