India Cuts Import Duties on Edible Oils

India’s Central Government has lowered basic customs duties on crude and refined palm, soybean and sunflower oils, with the revised rates taking effect September 24. The changes cut duties on crude palm and soybean oil to 5% from 10%, remove the duty on crude sunflower oil, and lower the rate on refined sunflower oil to 22.5% from 32.5%. Duties on refined palm and soybean oil fall to 27.5% from 32.5%. The government has presented the reductions as a way to lower import costs and ease domestic edible-oil prices, though their effect on consumers has not been measured in the reports. The Finance Ministry said lower duties on crude oils are intended to reduce landed costs and retail prices, encourage domestic refining and provide relief to consumers. India relies on imported edible oils, so import duties, global commodity prices and exchange-rate movements can affect costs in the domestic market. The revised rates also change the relative duty treatment of crude oils, which are processed by domestic refiners, and refined oils.