India Slashes Import Duties on Key Vegetable Oils Amid Price Pressures

The Indian government has announced a reduction in basic import duties on key vegetable oils to combat rising domestic prices ahead of the peak consumption season. The move aims to curb the almost 20% increase in domestic vegetable oil prices over the past year.

The biggest changes concern sunflower oil, with the basic duty on crude sunflower oil reduced from 10% to zero and refined oil from 32.5% to 22.5%. Additionally, the duty on crude palm and soybean oil has been cut from 10% to 5%, while refined palm and soybean oil will now incur a 27.5% import duty.

The government hopes that reducing the import burden will help contain prices and support consumption during the major religious festival season from September to November. The actual duty on imports of crude sunflower oil, taking into account additional targeted duties, is set to decrease from 16.5% to 5.5%, while for crude palm and soybean oils it will drop from 16.5% to 11%.