Cooking oil could become cheaper after the Centre announced a reduction in basic customs duty on imported edible oils. The revised rates will come into effect from September 24, according to the Finance Ministry.
The government has reduced the basic customs duty on crude soybean oil and crude palm oil from 10 per cent to 5 per cent. The move is expected to reduce the cost of importing these widely used edible oils.
The duty reduction covers both crude and refined categories, with the government also cutting the import duty on refined oils.
Duty on refined palm and soybean oil reduced
The customs duty on refined soybean oil and refined palm oil has been reduced from 32.5 per cent to 27.5 per cent.
The Centre has also reduced the duty on crude sunflower oil from 10 per cent to zero. This means imports of crude sunflower oil will no longer attract basic customs duty under the revised rates.
For refined sunflower oil, the customs duty has been reduced from 32.5 per cent to 22.5 per cent.
The government expects the reductions to lower the import cost of edible oils and potentially provide some relief to consumers.
Impact on cooking oil prices
The reduction in customs duty is expected to make imported edible oils cheaper for refiners and other importers. However, the actual impact on retail prices will depend on how much of the lower import cost is passed through the supply chain.
Prices paid by consumers are also influenced by international edible oil prices, exchange rates, transportation costs, refining expenses and other market factors.
Palm, soybean, mustard and sunflower oil in India
Palm oil is widely used because of its relatively low cost. It is commonly found in restaurant food, packaged snacks, biscuits and food prepared by roadside eateries.
Soybean oil is another widely used cooking oil in Indian households. Its relatively light nature and affordability have made it popular for everyday cooking.
Mustard oil remains particularly popular in northern and eastern parts of India. It is known for its distinctive pungent flavour and is commonly used in traditional cooking.
Sunflower oil is widely used in urban households and is often preferred for its relatively light texture. With the duty on crude sunflower oil now reduced to zero, imports of the oil could become cheaper.
Peanut or groundnut oil is widely used in parts of Gujarat and southern India and is commonly used for frying, including snacks such as pakoras.
The latest duty cuts are aimed at easing import costs and could influence edible oil prices in the domestic market in the coming weeks.
