New Delhi: The Center reduced the import duty on refined soya oil and refined sunflower oil from 17.5 per cent to 12.5 per cent with effect from Thursday, a government notification said, adding that the move was done to reduce local prices.
Effect
After this important step, now all crude oils like palm oil, sunflower oil and soya oil will have to pay 5 per cent import duty, ie a total tax burden of 5.5 per cent. Talking about refined edible oil, the effective import duty is 13.75 per cent. The import duty for refined oil will be 12.5 per cent in addition to 10 per cent cess on import duty.
“With the low duty differential between crude and refined soy and sunflower oil, shipments of refined soy oil or sunflower oil are likely not commercially viable, but have some temporary emotional impact on the market,” said the executive director of the Solvent Extractors Association of May have.” India (SEA) BV Mehta to Mint.
According to the latest data from the Solvent Extractors Association of India (SEA), India’s import of vegetable oils (edible and non-edible) saw a 10 per cent drop in April, while palm oil imports declined by 31 per cent to 505,000 tonnes. , On the other hand, soybean oil imports rose 1 per cent to 262,000 tonnes and sunflower oil imports rose 68 per cent to 249,000 tonnes on higher supplies at the lowest international price compared to soybean oil and crude palm oil.
The total delivered cost for crude palm oil (CPO) at Mumbai port was recorded at $860 per tonne on June 2, as against $1,5557 per tonne during the same time last year. At the same time, the figure of crude soya oil stood at $ 970 as compared to 41,686 and sunflower oil at 4860 as compared to $ 1,941 per tonne.
Refined soya oil was priced at Rs 90,000 per tonne and sunflower oil at Rs 92,000 per tonne.
According to SEA data, the price of refined soya oil was Rs 1.4 lakh and sunflower oil was Rs 1.7 lakh per tonne during the same period a year ago.
India is the world’s largest buyer when it comes to vegetable oils and relies on imports for about 60 percent of its annual consumption of 24 metric tons. Crude oil and refined oil account for 75 percent and 25 percent, respectively, of India’s total import of 14 metric tonnes of edible oil for the whole year.