Latest news with #BasicCustomsDuty
Mint
2 hours ago
- Business
- Mint
Indias vegetable oil imports flat in June despite tariff cut boost to crude oils
New Delhi, Jul 14 (PTI) India's vegetable oil imports remained flat at 15.49 lakh tonnes in June compared to the same month last year, even as shipments of crude edible oils surged more than 25 per cent, industry body Solvent Extractors Association (SEA) said on Monday. The rise in crude oil shipments came after the government reduced the Basic Customs Duty (BCD) on crude edible oils, including crude palm oil, crude soybean oil, and crude sunflower oil, to 10 per cent from 20 per cent, effective May 31. Total vegetable oils, comprising both edible and non-edible oils, stood at 15.50 lakh tonnes in June 2024. In the edible oil category, barring crude sunflower oils, imports of other crude edible oil variants rose 25.64 per cent to 11.51 lakh tonnes in June from 9.16 lakh tonnes a year earlier. However, crude sunflower oil shipments declined 53.58 per cent to 2.61 lakh tonnes in June from the year-ago period. According to SEA data, crude palm oil (CPO) imports rose 23.55 per cent to 7.88 lakh tonnes in June from 6.37 lakh tonnes a year earlier, while crude soybean oil imports increased 30.39 per cent to 3.59 lakh tonnes from 2.75 lakh tonnes. Crude Palm Kernel Oil (CPKO) imports rose 33.33 per cent to 4,000 tonnes in June from 3,000 tonnes in the year-ago period. Total imports of crude edible oils (CPO, CPKO, crude sunflower and crude soybean oils) stood at 11.51 lakh tonnes in June. Among refined edible oils, RBD palmolein imports rose to 1.63 lakh tonnes in June against 1.45 lakh tonnes a year earlier. Non-edible oil imports fell to 18,497 tonnes in June from 23,178 tonnes in June 2024. SEA said agencies, including NAFED, HAFED and NCDEX, are currently holding approximately 14 lakh tonnes of soybean and a similar quantity of rapeseed. "In view of the rising prices of edible oils, the Government of India may consider releasing a substantial quantity of these stocks into the market over the next three months, ahead of the upcoming harvest," SEA said. With the kharif soybean crop harvest expected in just two and a half months, early liquidation of these stocks will help stabilise prices during the festive season, the industry body added. "Timely action will not only benefit consumers but also ease the financial and logistical burden on government agencies, while supporting overall domestic availability of edible oils," SEA said. India, the world's largest edible oil consumer and importer, had edible oil stocks of 15.68 lakh tonnes as of July. In the first eight months of the oil year 2024-25 (November 2024-June 2025), total vegetable oil imports reached 94.34 lakh tonnes, down 8 per cent from 102.29 lakh tonnes in the same period last year.
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Business Standard
5 hours ago
- Business
- Business Standard
Vegetable oil imports flat in June despite tariff cut boost to crude oils
India's vegetable oil imports remained flat at 1.54 million tonnes in June compared to the same month last year, even as shipments of crude edible oils surged more than 25 per cent, industry body Solvent Extractors Association (SEA) said on Monday. The rise in crude oil shipments came after the government reduced the Basic Customs Duty (BCD) on crude edible oils, including crude palm oil, crude soybean oil, and crude sunflower oil, to 10 per cent from 20 per cent, effective May 31. Total vegetable oils, comprising both edible and non-edible oils, stood at 1.55 million tonnes in June 2024. In the edible oil category, barring crude sunflower oils, imports of other crude edible oil variants rose 25.64 per cent to 1.15 million tonnes in June from 916,000 tonnes a year earlier. However, crude sunflower oil shipments declined 53.58 per cent to 261,000 tonnes in June from the year-ago period. According to SEA data, crude palm oil (CPO) imports rose 23.55 per cent to 788,000 tonnes in June from 637,000 tonnes a year earlier, while crude soybean oil imports increased 30.39 per cent to 359,000 tonnes from 275,000 tonnes. Crude Palm Kernel Oil (CPKO) imports rose 33.33 per cent to 4,000 tonnes in June from 3,000 tonnes in the year-ago period. Total imports of crude edible oils (CPO, CPKO, crude sunflower and crude soybean oils) stood at 1.15 million tonnes in June. Among refined edible oils, RBD palmolein imports rose to 163,000 tonnes in June against 1.45 lakh tonnes a year earlier. Non-edible oil imports fell to 18,497 tonnes in June from 23,178 tonnes in June 2024. SEA said agencies, including NAFED, HAFED and NCDEX, are currently holding approximately 1.4 million tonnes of soybean and a similar quantity of rapeseed. "In view of the rising prices of edible oils, the Government of India may consider releasing a substantial quantity of these stocks into the market over the next three months, ahead of the upcoming harvest," SEA said. With the kharif soybean crop harvest expected in just two and a half months, early liquidation of these stocks will help stabilise prices during the festive season, the industry body added. "Timely action will not only benefit consumers but also ease the financial and logistical burden on government agencies, while supporting overall domestic availability of edible oils," SEA said. India, the world's largest edible oil consumer and importer, had edible oil stocks of 1.56 million tonnes as of July. In the first eight months of the oil year 2024-25 (November 2024-June 2025), total vegetable oil imports reached 9.43 million tonnes, down 8 per cent from 10.22 million tonnes in the same period last year. Indonesia and Malaysia are the major palm oil suppliers to India, while Argentina, Brazil and Russia supply soybean oil. Russia and Ukraine are the main suppliers of sunflower oil. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hindustan Times
05-07-2025
- Business
- Hindustan Times
Can India become a global leader in battery manufacturing?
As India advances toward its vision of Viksit Bharat, achieving a clean energy future will be crucial. The rising demand for advanced batteries is fueled by the growth of electric vehicles (EVs), consumer electronics, and stationary energy storage needs. With India's battery storage demand expected to grow from 34 GW in 2023 to 450 GW by 2030, the focus now shifts to the country's manufacturing capabilities. As India emerges in the global energy transition, addressing gaps, and seizing opportunities will be key to a self-reliant battery ecosystem. Manufacturing (Bloomberg) In light of this, the 2025 Union Budget removed Basic Customs Duty (BCD) on 28 capital goods used in mobile battery manufacturing, encouraging local output for consumer electronics. As part of a broader strategy since the July 2024 Budget, India had already nullified BCD on 25 critical minerals. The 2025 Union Budget's exemptions on cobalt powder, LiB scrap, lead, zinc, and 12 other critical minerals aim to strengthen sourcing of affordable critical mineral feedstock at competitive price, strengthen domestic battery production, and cut import dependence. Removing BCD on critical minerals lowers costs, attracts investment in refining and recycling, and strengthens India's battery supply chain for global competitiveness. However, this is a long-term journey, requiring approximately five to six years to rapidly scale up domestic production, enhance recycling capacities and strengthen R&D investments. This effort is key to cutting imports and building a resilient circular economy. India's battery manufacturing sector is still in its nascent stage. LiBs, essential for powering consumer electronics, have become the dominant technology due to their high energy density and longer lifespan. India's rising LiB demand highlights its import dependence due to limited local manufacturing. Without strong policy support and industrial growth, reliance on countries like China, South Korea, and Japan may threaten long-term energy security and economic resilience. Currently, China dominates the global LiB market manufacturing, accounting for 77% of worldwide cell capacity and 80% of raw material refining. To counter China's dominance and boost local capacity, India has launched initiatives like Make in India for self-reliant manufacturing, the National Critical Mineral Mission (NCMM) for critical mineral supply, and a PLI Scheme for Critical Minerals to promote recycling and advanced technologies—together strengthening domestic industry and accelerating manufacturing. Despite efforts to boost domestic manufacturing, securing raw material supply chains remains urgent. Under NCMM, India may form strategic partnerships with friendly nations like Australia and Chile having the largest lithium reserves to bridge the raw material gap. India and Australia have already committed $43.2 million for joint initiatives between Commonwealth Scientific & Industrial Research Organization (CSIRO) and Indian partners, fostering collaboration in critical minerals research and technology development. India and Chile share a long-standing trade relationship, formalized by a 2005 Framework Agreement and a Preferential Trade Agreement to boost bilateral trade, including minerals and energy. These partnerships can help secure lithium supply and support India's battery manufacturing. However, India must also invest in refining and processing to cut import dependence. Another key hurdle to India's LiB growth is low R&D investment. India's Gross Expenditure on R&D (GERD) across sectors stands at just 0.64% of GDP, significantly lower than China (2.4%) and the US (3.4%). With low overall GERD, battery R&D investment remains limited, hindering innovation. To compete globally, India must strengthen multi-institutional R&D collaborations. The ministry of electronics and IT had taken an initiative to establish a Centre of Excellence on Rechargeable Battery Technology at Centre for Materials for Electronics Technology, Pune to support SMEs the R&D needs on material, machine and process of advanced chemistry cell including cathode and anode materials of various rechargeable batteries like Li-ion, sodium ion, solid state Li-ion and flexible batteries. Scaling more public-private partnerships can boost local IP and aid industry. India should explore alternative chemistries like sodium-ion, sodium-sulphur, metal-air, redox flow, and lithium-metal—to reduce reliance on vulnerable critical mineral supply chains. Efforts may be focused on building a strong recycling framework and boosting R&D via support labs and start-up incubators can help lower costs and reduce import dependence. However, globally, the present recycling rate of Ni, Co and Li are merely 60%, 32%, and 0.5% respectively, which is due to challenging reverse logistics of collecting end-of-life batteries and lack of profitable recycling technologies with limited volume. Recycling and refining industries must adopt innovative technologies to make metal extraction more profitable. At the same time, the emphasis on using domestically recycled materials under the Battery Waste Management Rules,2022(BWMR) though challenging, offers a chance to boost India's self-sufficiency in critical materials. The regulation allows the targets to be met using any battery component, including non-critical materials like aluminum and plastics, rather than focusing on reclaiming lithium, cobalt, or nickel. Given the complexities, realistic timelines are key to avoid supply chain disruptions. While South Korea took over two decades to set recycled content guidelines after starting LiB production, India is aiming to introduce such regulations within just three years of commercial-scale manufacturing—highlighting the need for a more pragmatic timeline. India's recycling infrastructure is underdeveloped, with most end-of-life LiBs poorly processed in the informal sector, causing major material losses. The current pace of progress is insufficient, making it imperative to accelerate domestic LiB manufacturing and recycling capacities in the next five to six years to meet BWMR guidelines and reduce dependency on external supply chains. Battery recycling can reduce India's reliance on raw material imports by recovering lithium, cobalt, and nickel from end-of-life LiBs for reuse in battery production. Unlike China, which is currently the only market with significant LiB recycling infrastructure, India's ecosystem is deterred by limited investment and unorganised battery waste management. As India moves towards becoming a global leader in consumer electronics, ensuring a stable and sustainable supply of LiBs will be critical. Creating reserves of recycled critical minerals under NCMM, can help achieve true Atmanirbharta. India is at a crucial juncture in its journey toward self-sufficiency in LiB manufacturing, a sector vital for clean energy, digital growth, and industrial expansion. While schemes like PLI, customs duty cuts, and NCMM offer policy momentum, building a resilient battery ecosystem needs scaled-up production, secure supply chains, and stronger R&D. Addressing raw material gaps through global tie-ups, enhancing refining & processing capacities, and advanced battery recycling can cut import dependence. Multi-institutional R&D, alternative chemistries, and phased recycling mandates will enable a circular economy. Well-structured regulations, industry-government collaboration, and smooth execution, India can shift from assembly to value addition and emerge as a global leader in sustainable battery manufacturing. This article is authored by Shiksha Dahiya, senior manager public policy, Chase Advisors and Sandeep Chatterjee, former senior director, ministry of electronics and information technology.
India Gazette
22-06-2025
- Business
- India Gazette
Duty reduction on crude edible oils beneficial for both refiners, consumers: CareEdge
New Delhi [India], June 22 (ANI): The recent cut in import duties on crude edible oils is beneficial for major industry players as it would encourage refiners to favour crude imports over refined oils, a report by CareEdge Ratings said. Also, according to the rating agency, the duty reduction would lead to improved capacity utilisation and enhanced refining margins through increased domestic processing. On May 30 this year, the government announced a reduction in the Basic Customs Duty (BCD) on key imported crude edible oils -- Crude Palm Oil (CPO), Crude Soybean Oil, and Crude Sunflower Oil -- lowering it from 20 per cent to 10 per cent. The move is widely seen as an effort to taper domestic edible oil prices and control food inflation. Post the duty cut, the Basic Customs Duty on Refined Edible Oils (RBD) remains at 32.5 per cent, widening the differential between Refined, Bleached, and Deodorized palm oil and crude variant of palm oil to 19.25 per cent and enhancing the competitive advantage for domestic refiners. Ultimately, it will aid better price discovery for retail consumers. India remains the world's leading importer of edible oils, meeting approximately 55-60 per cent of its domestic consumption through overseas purchases primarily from Indonesia and Malaysia. 'The increase in duty differential between crude and refined edible oils shall enhance competitiveness for domestic refiners,' the CareEdge report read. Domestic retail edible oil prices, which saw firm trends during the first half of 2025 due to elevated global prices and currency depreciation, are expected to soften over the coming weeks as refiners pass on cost advantages resulting from the duty reduction, the rating agency said. The Ministry of Consumer Affairs has also issued directives requiring edible oil companies to revise their Maximum Retail Prices (MRPs) downward and submit weekly updates on Price-to-Distributor (PTD) rates. With food inflation (CPI-based) easing to 2.8 per cent in May 2025 (as per data from the Ministry of Statistics and Programme Implementation) and the Indian Meteorological Department forecasting a stronger-than-normal monsoon, these developments are anticipated to reinforce the downtrend in edible oil retail prices collectively. 'The recent duty revision acts as a timely and prudent policy intervention aimed at moderating inflationary pressures while bolstering the competitiveness of domestic refiners. The increased duty differential is expected to enhance gross refining margins and boost capacity utilisation in the near term. Additionally, the reduced landed costs will likely result in a price correction over the near term, ultimately benefiting retail consumers,' said Rajan Sukhija, Associate Director, CareEdge Ratings. Priti Agarwal, Senior Director, CareEdge Ratings, said, 'The move is a win-win for all in the domestic edible oil manufacturing value chain as it will not just strengthen the capacity utilisation of domestic refiners but also ensure a fair price to domestic oilseed farmers and a fair price to consumers.' (ANI)
Time of India
22-06-2025
- Business
- Time of India
Duty reduction on crude edible oils beneficial for both refiners, consumers: CareEdge
The recent cut in import duties on crude edible oils is beneficial for major industry players as it would encourage refiners to favour crude imports over refined oils, a report by CareEdge Ratings said. Also, according to the rating agency , the duty reduction would lead to improved capacity utilisation and enhanced refining margins through increased domestic processing. On May 30 this year, the government announced a reduction in the Basic Customs Duty (BCD) on key imported crude edible oils, Crude Palm Oil (CPO), Crude Soybean Oil, and Crude Sunflower Oil, lowering it from 20 per cent to 10 per cent. The move is widely seen as an effort to taper domestic edible oil prices and control food inflation . Post the duty cut, the Basic Customs Duty on Refined Edible Oils (RBD) remains at 32.5 per cent, widening the differential between Refined, Bleached, and Deodorized palm oil and crude variant of palm oil to 19.25 per cent and enhancing the competitive advantage for domestic refiners. Live Events Ultimately, it will aid better price discovery for retail consumers. India remains the world's leading importer of edible oils , meeting approximately 55-60 per cent of its domestic consumption through overseas purchases primarily from Indonesia and Malaysia. "The increase in duty differential between crude and refined edible oils shall enhance competitiveness for domestic refiners," the CareEdge report read. Domestic retail edible oil prices, which saw firm trends during the first half of 2025 due to elevated global prices and currency depreciation, are expected to soften over the coming weeks as refiners pass on cost advantages resulting from the duty reduction, the rating agency said. The Ministry of Consumer Affairs has also issued directives requiring edible oil companies to revise their Maximum Retail Prices (MRPs) downward and submit weekly updates on Price-to-Distributor (PTD) rates. With food inflation (CPI-based) easing to 2.8 per cent in May 2025 (as per data from the Ministry of Statistics and Programme Implementation) and the Indian Meteorological Department forecasting a stronger-than-normal monsoon, these developments are anticipated to reinforce the downtrend in edible oil retail prices collectively. "The recent duty revision acts as a timely and prudent policy intervention aimed at moderating inflationary pressures while bolstering the competitiveness of domestic refiners. The increased duty differential is expected to enhance gross refining margins and boost capacity utilisation in the near term. Additionally, the reduced landed costs will likely result in a price correction over the near term, ultimately benefiting retail consumers," said Rajan Sukhija, Associate Director, CareEdge Ratings. Priti Agarwal, Senior Director, CareEdge Ratings, said, "The move is a win-win for all in the domestic edible oil manufacturing value chain as it will not just strengthen the capacity utilisation of domestic refiners but also ensure a fair price to domestic oilseed farmers and a fair price to consumers."
