Govt slashes basic customs duty on crude edible oils from 20% to 10% – Times of India

NEW DELHI: In a move to put a check on edible oil prices, the govt on Wednesday slashed the Basic Customs Duty (BCD) on crude edible oils – soybean, sunflower and palm – from 20% to 10%.This revision has widened the import duty differential between crude and refined edible oils “from 8.75% to 19.25%”, as per the food ministry. It added this will encourage domestic refining capacity utilisation and reduce imports of refined oils.In statement, the ministry said, “This adjustment aims to address the escalating edible oil prices resulting from the Sept 2024 duty hike and concurrent increases in international market prices.”Following the decision, the Union food ministry has instructed edible oil industry associations to immediately pass on import duty reductions to consumers. Industry stakeholders are expected to adjust their Price to Distributors (PTD) and Maximum Retail Price (MRP) in accordance with lower landed costs with immediate effect, it said.The ministry has also shared a format with the edible oil industry for reporting reduced MRP and PTD data, emphasising that “timely transmission of benefits through the supply chain is imperative to ensure consumers experience corresponding decreases in retail prices”.