Edible oil import gets exemption from Customs duty and agri cess for two years

The government is firefighting inflation and trying to control the prices of wheat, cotton, edible oil, pulses, and sugar. The government has touched upon edible oil yet again, and now an exemption has been announced in Customs duty and agri cess for two years for soy and sunflower oil.

The edible oil cess and duty currently are at 5.5 percent, which has been brought down to nearly zero. Imports have been allowed for 20 lakh tonnes each for crude soy and crude sunflower oil until March 2024.

Reacting to the same, Dorab Mistry, director of Godrej International, said, “Even today, with the Russia-Ukraine war and all the difficulties, India is able to procure between 60,000 and 100,000 tonnes of sunflower oil every month. This will give relief. This will also have a beneficial effect on the palm oil market because it sends the word out very clearly and loudly to the palm oil exporters that India can make alternative arrangements.”

Talking about import relief on edible crude oil, he said, “It is a step in the right direction. The consumer in India needs some relief. This will bring the anticipated relief of Rs 6-7 per kilo. It shows that India has an alternative to palm.”

India imports nearly 55-65 percent of its edible oil needs. Edible oil prices have surged anywhere between 130-165 percent in the past two and a half years.