New Delhi, 24 September (H.S.): The Central Government has sharply reduced import duties on major edible oils, including soybean, palm and sunflower oil, to provide relief to consumers ahead of the festive season. The revised rates came into effect on September 24.

According to a government notification, the basic customs duty (BCD) on crude sunflower oil has been reduced from 10 per cent to nil, while the BCD on crude soybean oil and crude palm oil has been cut from 10 per cent to 5 per cent. The government has also reduced the applicable BCD on the corresponding refined edible oils, while maintaining a 19.25-percentage-point difference in import duties between crude and refined edible oils.

The reduction in BCD on major imported crude edible oils is aimed at moderating domestic edible oil prices, providing relief to consumers and easing inflationary pressures arising from a sharp rise in international edible oil prices.

The government has also issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit of the reduction in import duties is passed on to consumers.

Industry stakeholders have been asked to immediately revise the price to distributors (PTD) and maximum retail price (MRP) in line with the reduction in costs. Edible oil associations have also been requested to advise their members to implement the corresponding price reductions without delay.

The government said the rationalisation of import duties has taken into account the rise in international edible oil prices and the consequent increase in costs and retail prices in the domestic market.

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Hindusthan Samachar / Jun Sarkar