The Department of Revenue, operating under the Ministry of Finance, has taken a significant step to align import duties on refined soy oil and refined sunflower oil with those on RBD (Refined, Bleached, and Deodorized) palm olein and RBD palm oil. Through Notification No. 39/2023-Customs, issued on June 14, 2023, the government aims to ensure fairness and parity in the import duty structure for various edible oils in India.
India, being one of the largest importers of crude soy oil and crude sunflower oil, has traditionally relied on these oils to meet its ever-growing demand. However, with this recent development, the government is seeking to create a level playing field for all types of edible oils in the country.
Under the new notification, the import duty on refined soy oil and refined sunflower oil will be reduced to match the duty imposed on RBD palm olein and RBD palm oil. This adjustment is expected to bring about a shift in the import preferences of edible oil traders and potentially impact the overall edible oil market.
The decision to lower import duties on refined soy oil and refined sunflower oil is likely to impact the edible oil basket prices in India. With the reduced duty, traders and importers may show a greater inclination towards importing refined soft oils, which could affect the prices of these oils in the domestic market.
Experts predict that the move may lead to increased imports of refined soy oil and refined sunflower oil, as importers will now find it more economically viable to bring in these processed oils. The shift in demand towards refined soft oils could result in an oversupply of crude soy oil and crude sunflower oil, which may potentially impact their prices.
It is important to note that this policy change aims to create a fair and balanced import duty structure for all types of edible oils. The government’s intention is to promote competition and provide consumers with a wider variety of choices while ensuring that the domestic edible oil the industry remains competitive.
The revised import duty structure is expected to have implications for both domestic and international stakeholders in the edible oil market. Market participants, including traders, importers, and consumers, will closely monitor the evolving dynamics and price movements in the coming months. The Ministry of Finance’s decision to align import duties on refined soy oil and refined sunflower oil with those on RBD palm olein and RBD palm oil marks a significant step towards promoting a transparent and competitive edible oil market in India. Time will tell how this change will impact the overall landscape and prices of edible oils in the country.
Disclaimer: The above article is for informational purposes only and does not constitute financial
or legal advice. Please consult with a professional advisor or relevant government authorities for
specific guidance regarding import duties and edible oil market dynamics.