Centre asks edible oil industry to maintain prices amid duty hike on imports
The Indian government has advised edible oil associations to maintain the current minimum retail price (MRP) of oils until stocks imported at 0% and 12.5% Basic Customs Duty (BCD) are depleted. This follows price reductions in oils such as sunflower, soybean, and mustard oil due to falling international prices and reduced import duties.
The government has advised edible oil associations to maintain the minimum retail price (MRP) of oil until the availability of edible oil stocks imported at 0% and 12.5% Basic Customs Duty (BCD).
The Secretary of the Department of Food and Public Distribution (DFPD) chaired a meeting with representatives from the Solvent Extraction Association of India (SEAI), the Indian Vegetable Oil Producers’ Association (IVPA), and the Soybean Oil Producers Association (SOPA) today to discuss pricing strategies.
The leading edible oil associations were advised to ensure that the MRP of each type of oil is maintained until stocks imported at 0% and 12.5% BCD are exhausted. They were also asked to address this matter with their members immediately.
Previously, following meetings held by the department with leading edible oil associations, the MRP of oils such as sunflower oil, soybean oil, and mustard oil had been reduced by the industry.
These price reductions were a result of falling international prices and reduced import duties on edible oils, making them cheaper. The industry has been periodically advised to align domestic prices with international prices to lessen the burden on consumers.
The Government of India has increased the basic customs duty on various edible oils to support domestic oilseed prices.
Effective from September 14, 2024, the basic customs duty on crude soybean oil, crude palm oil, and crude sunflower oil has been raised from 0% to 20%, bringing the total effective duty on crude oils to 27.5%. Additionally, the basic customs duty on refined palm oil, refined sunflower oil, and refined soybean oil has increased from 12.5% to 32.5%, making the total effective duty on refined oils 35.75%.
The central government is also aware that there is close to 30 lakh metric tonnes (LMT) of edible oil stock imported at lower duties, which is sufficient for 45 to 50 days of domestic consumption.
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