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Business Standard
24-06-2025
- Business
- Business Standard
Landed prices of imported edible oils move up despite halving of duty
While exporters have raised prices to nullify duty cuts, concerns over the Israel-Iran conflict, and the expected global diversion of additional vegetable oil for biofuel blending schemes are factors New Delhi Listen to This Article The landed price of major edible oils has risen by 3-5 per cent during the week ended June 20 as compared to the previous week that ended in June 13, data from industry bodies show. The upward movement is despite India lowering import duties on crude oils by 10 percentage points, a 50 percent reduction, last month to ease inflationary pressures and to ensure steady supplies. In fact, consumer price index-based inflation (combined) for most edible oils has remained stubbornly high since January 2025 despite overall food inflation coming down, prompting the Department of Food and Public Distribution (DFPD) to
India.com
19-06-2025
- Business
- India.com
Will Ensure That Edible Oil Price Reduction Reaches Consumers: Centre
New Delhi: The government has said that it will continue to closely monitor and conduct periodic reviews to ensure that the benefits of lower import duties on edible oil translate effectively into lower consumer prices across the country. Any anomalies or delays in passing on the price benefits will be addressed through appropriate regulatory actions, according to Department of Food and Public Distribution (DoFPD), which has conducted a series of comprehensive inspection visits to key edible oil refining and processing facilities across the country. The inspections, which were carried out over the past few days, covered major port-based edible oil refineries and inland processing plants that import Crude Palm Oil (CPO), Crude Soybean Oil, and Crude Sunflower Oil. Some of the major industries were visited, the specific States include: Maharashtra, Andhra Pradesh, Madhya Pradesh and Gujarat, where maximum edible oil processing facilities are situated. 'These inspections were aimed at reviewing the impact of recent duty reductions on the Maximum Retail Price (MRP) and the Price to Distributor (PTD) of refined edible oils such as Refined Sunflower Oil, Refined Soybean Oil, and RBD Palmolein,' according to the Ministry of Consumer Affairs. A majority of the inspected units have already reduced both MRP and PTD in response to the reduction in landed cost of imported crude edible oils, made possible due to the recent rationalisation of import duties. Several processing units conveyed their commitment to implement further reductions in prices in the next few days, as they continue to receive lower-cost shipments of crude oils under the revised duty structure. The initiative has helped stabilise prices in the edible oil market, and early signs suggest that the benefits are gradually reaching end consumers through lower retail prices. In recent months, the government has taken several policy measures to curb inflationary trends in edible oil prices. A major step included reducing the import duty on various crude edible oils to lower the overall landed cost. The Centre has reduced the basic customs duty on crude edible oils, including crude sunflower, soybean, and palm oils, from 20 per cent to 10 per cent to bring down prices in the local market.
Time of India
12-06-2025
- Business
- Time of India
Govt asks edible oil industry to pass on duty cut benefits to consumers
HighlightsThe Indian food ministry has mandated that edible oil industry associations immediately pass on the reduction in customs duties on crude oils to consumers, in response to rising food inflation. The Basic Customs Duty on crude edible oils, such as crude sunflower, soybean, and palm oils, has been halved from 20 percent to 10 percent to alleviate the impact of sharp price increases on consumers. Industry stakeholders are required to adjust their Price to Distributors and Maximum Retail Price in accordance with lower landed costs and provide weekly updates on reduced pricing to the Department of Food and Public Distribution. The food ministry has ordered edible oil industry associations to immediately pass on import duty reductions to consumers, following a government decision to halve customs duties on crude oils amid soaring food inflation . A meeting with leading edible oil industry associations and industry stakeholders was held under the chairmanship of Secretary, Department of Food and Public Distribution, where an advisory was issued directing them to pass on the benefits from the duty reduction 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, the department said in a statement. Associations have been requested to advise their members to implement immediate price reductions and share updated brand-wise MRP sheets with the department on a weekly basis. The ministry 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". The decision came after a detailed review of the sharp rise in edible oil prices following last year's duty hike. The increase led to significant inflationary pressure on consumers, with retail edible oil prices soaring and contributing to rising food inflation. The Centre has reduced the Basic Customs Duty (BCD) on crude edible oils -- crude sunflower, soybean, and palm oils -- from 20 per cent to 10 per cent, resulting in the import duty differential between crude and refined edible oils increasing from 8.75 per cent to 19.25 per cent. This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices. The 19.25 per cent duty differential between crude and refined oils will help encourage domestic refining capacity utilisation and reduce imports of refined oils, officials said. Import duty on edible oils is one of the important factors that impacts landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices.
India Gazette
11-06-2025
- Business
- India Gazette
Centre reduces basic custom duty on major imported crude edible oils from 20% to 10%
New Delhi [India], June 11 (ANI): The central government on Wednesday reduced Basic Custom duty (BCD) on major imported crude edible oils from 20 per cent to 10 per cent. The Ministry of Consumer Affairs, Food and Public Distribution said in a release that the Centre has reduced the Basic Customs Duty on crude edible oils - crude sunflower, soybean, and palm oils - has been reduced from 20% to 10% resulting in the import duty differential between crude and refined edible oils from 8.75% to 19.25%. This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices. An advisory has been issued to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers, the release said. It said 19.25 % duty differential between crude and refined oils will help to encourage domestic refining capacity utilization and reduce imports of refined oils. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers. The revised duty structure will discourage the import of refined palmolein and redirect demand towards crude edible oils especially crude palm oil, thereby strengthening and revitalizing the domestic refining sector. 'This significant policy intervention not only ensures a level playing field for domestic refiners but also contributes to the stabilization of edible oil prices for Indian consumers,' a release said. A meeting with leading Edible Oil Industry Associations and industry was held under the Chairmanship of Secretary, Department of Food and Public Distribution, and advisory was issued to them to pass on the benefits from this duty reduction on to consumers. Industry stakeholders are expected to adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower landed costs with immediate effect. The Associations have been requested to advise their members to implement immediate price reductions and share the updated brand-wise MRP sheets with the Department on a weekly basis. DFPD shared the format with edible oil industry for sharing the reduced MRP and PTD data. 'The timely transmission of this benefit to the supply chain is imperative to ensure that consumers experience a corresponding decrease in retail prices,' the release said. This decision comes after a detailed review of the sharp rise in edible oil prices following last year's duty hike. The increase led to significant inflationary pressure on consumers, with retail edible oil prices soaring and contributing to rising food inflation. (ANI)
Mint
11-06-2025
- Business
- Mint
Centre halves basic customs duty on imported crude edible oils to 10%
New Delhi: The government has cut the basic customs duty (BCD) on imported crude edible oils from 20% to 10%. This move, announced on Wednesday, aims to lower retail prices for consumers and will impact sunflower, soybean and palm oils. According to a statement by the ministry of consumer affairs, food and public distribution, this reduction comes in response to rising global prices and follows a previous BCD hike in September 2024. "Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers," said the statement. The reduction is also aimed at incentivising the refining of crude edible oils in India by widening the import duty differential between crude and refined oils from 8.75% to 19.25% and making crude edible oil imports easier than the imports of refined products. The government has also asked industry stakeholders to pass on benefits to consumers immediately. "Industry stakeholders are expected to adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower landed costs with immediate effect," the statement said. "A meeting with leading Edible Oil Industry Associations and industry was held under the Chairmanship of Secretary, Department of Food and Public Distribution, Government of India and advisory was issued to them to pass on the benefits from this duty reduction on to consumers," the statement added. The government has also asked the industry to implement these measures and send revised maximum retail prices for each brand to the government on a weekly basis, according to the statement. The industry is of the view that the decision will protect the sector from influx of refined oils imports, causing capacity injury to the vegetable oil sector. According to Indian Vegetable Oil Producers' Association (IVPA), the move will not just strengthen the domestic refining capacities of Indian refiners but also ensure fair price to oilseed farmers and a fair price to the consumers. According to IVPA data, imports of refined palm oil surged from 4.58 lakh tonnes during June–September 2024 to 8.24 lakh tonnes (representing about 30% of total palm oil imports) in the period October 2024–February 2025. Additionally, under South Asian Free Trade Area provisions of zero duty, refined oils have been flooding the Indian markets due to the huge refined oil duty advantage neighbouring countries enjoyed.
