The Government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices. This provides relief to consumers and mitigates inflationary pressures arising from the sharp increase in international edible oil prices.

 

The Ministry of Consumer Affairs, Food and Public Distribution said that 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%  It also said that the Government has simultaneously reduced the applicable BCD on the refined edible oils while maintaining an import duty differential of 19.25% between crude and refined edible oils.

 

The Ministry informed that the reduction in BCD on crude edible oils is expected to lower their landed cost and facilitate transmission of the benefit through the domestic supply chain. It said that the measure is intended to provide relief to consumers while contributing to the broader objective of containing food-price and overall inflationary pressures.

 

The Government has also 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. Government, in a statement, said that Industry stakeholders have been requested to immediately revise their Price to Distributors and Maximum Retail Price in accordance with the reduction in landed costs. Edible oil associations have also been requested to advise their members to implement the corresponding price reductions without delay.