India Cuts Import Duties on Crude Edible Oils Amid Rising Global Prices

The Indian government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils to mitigate inflationary pressures caused by rising global prices. This move is expected to moderate domestic edible oil prices and provide relief to consumers.

The BCD on Crude Sunflower Oil has been reduced from 10% to Nil, while the BCD on Crude Soybean Oil and Crude Palm Oil has been reduced from 10% to 5%. The government has also reduced the applicable BCD on refined edible oils, maintaining an import duty differential of 19.25% between crude and refined edible oils.

The reduction in BCD is expected to lower the landed cost of crude edible oils and facilitate the transmission of benefits through the domestic supply chain. The government 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.