India Cuts Edible Oil Duties, Potentially Easing Snack Makers' Costs

The Indian government has reduced the duty on edible oil imports, which could ease costs for manufacturers of biscuits, noodles, and fried snacks. The basic customs duty on crude palm and soybean oils was cut from 10% to 5%, while that on crude sunflower oil was reduced from 10% to nil. Duties on refined varieties were also lowered.

An analyst note from Nuvama identified bakeries and fried-snack makers as the primary beneficiaries of this move, given their reliance on palm oil. Bikaji Foods International expects its oil costs to fall by around 3-4%, but does not anticipate an immediate change in prices or pack sizes.

The impact will depend on various factors, including global oil prices and the rupee's value. Companies like Indraneel Chitale's, which use domestically sourced groundnut oil, may see little direct benefit from this duty cut.