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.
Ahead of the upcoming festival season, the Union Government announced a reduction in the Basic Customs Duty (BCD) on major imported crude edible oils, including palm oil, effective from September 24. The government 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.
This decision comes as the United Nations' Food and Agriculture Organisation (FAO) reported a rise in global vegetable oil prices, with palm and soy oil prices surging, while sunflower and rapeseed oil quotations remained firm. The new BCD for crude palm oil will be reduced from 10% to 5%, while BCD for peanut oil and olive oil will be 27.5%.
Additionally, the BCD for refined palm oil has been lowered from 32.5% to 27.5%. The Indian Vegetable Oil Producers' Association (IVPA) welcomed the decision, anticipating that lower import duties will improve landed costs of imported edible oils, potentially resulting in reduced consumer prices. However, edible oilseeds farmers expressed concerns over the move, fearing its impact on their livelihoods and the proposed trade deal with the United States, which is a major producer of soybean oil.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
