SOURCE :- SIASAT NEWS
New Delhi:The Food Ministry has asked edible oil companies to pass on the full benefit of lower import duties on cooking oils to consumers.
On Wednesday, September 23, the government reduced the basic customs duty (BCD) on crude sunflower oil from 10 per cent to nil. The BCD on refined sunflower oil has been trimmed from 32.5 per cent to 22.5 per cent.
The BCD on crude soybean oil and palm oil has been slashed from 10 per cent to 5 per cent, and on refined soybean oil and palm oil from 32.5 per cent to 27.5 per cent.
In an official statement on Thursday, the ministry said it 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 told to immediately revise their price to distributors (PTD) and maximum retail price (MRP) in accordance with the reduction in landed costs.
The ministry has directed edible oil associations to advise their members to implement the corresponding price reductions without delay.
“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,” the statement said.
On the duty cut, the ministry said the decision is aimed at moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.
“The duty rationalisation takes into account the increase in international edible oil prices and the consequent rise in domestic landed costs and retail prices. Import duties constitute an important component of the landed cost of imported edible oils and, therefore, have a bearing on domestic market prices,” it said.
The ministry said it has maintained the duty differential between crude and refined edible oils to support the utilisation of domestic refining capacity and discourage excessive imports of refined edible oils.
According to industry body SEA, India’s edible oil import bill is estimated to rise 9 per cent to Rs 1.75 lakh crore during the current marketing year ending October on higher volumes and rupee depreciation.
Already, during the November-August period of the 2025-26 oil year, the total vegetable oil imports rose 4 per cent to 138.8 lakh tonnes from 133.37 lakh tonnes in the year-ago period.
Vegetable oil comprises edible and non-edible oils.
India imports palm oil from Malaysia and Indonesia, while soyabean oil comes from Argentina and Brazil.
Centres decision a blow to farmers: Telangana minister
Telangana Agriculture Minster Thummala Nageshwar Rao on Thursday, September 24, said thatto reduce the import duty on crude palm oil, a move that harms the interests of palm oil farmers.
The minister criticized the Centre’s “dual standards,” noting that while it urges states to expand oil palm cultivation and encourage farmers to adopt this crop, it simultaneously reduces duties on palm oil imported from abroad.
“They encourage farmers to cultivate oil palm, yet the Centre undermines the conditions necessary for farmers to get a remunerative price for their produce. What kind of farmer-friendly policy is it to steer farmers towards oil palm with one hand while facilitating a market for foreign palm oil by reducing import duties with the other?” Rao asked.
this move enhances the competitive advantage of imported palm oil and could exert downward pressure on domestic oil palm fresh fruit bunch (FFB) prices.
“It is an irresponsible decision by the Centre to reduce the import duty at a time when the Telangana government is advocating for an increase in duties to support farmers. Whom does the Centre intend to benefit by favoring foreign imports when it should be ensuring price security for farmers?” He questioned.
Rao noted that oil palm is not a crop harvested and sold within a single season; rather, it is a long-term crop requiring farmers to invest over several years while bearing costs for water, fertilizers, and maintenance. He emphasized that the Central Government has a responsibility to ensure policy stability regarding market prices for such a crop.
SOURCE : SIASAT
