The move by the ministry is seen as a measure to dampen local prices and to ensure availability of oil to the consumers.
“The Basic Import Duty is an important factor which impacts the landed cost of Edible Oils which in turn affects the domestic prices. Reduction in Import Duty on Refined Sunflower Oil and Refined Soyabean Oil will benefit the consumers, as it will help in easing the domestic retail prices,” the release stated.
The import duties on refined soyabean oil and refined sunflower oil were last reduced in October, 2021, when the international prices were very high, which was getting reflected in the domestic prices as well. The import duty was brought down from 32.5 per cent to 17.5 per cent This was done as during the year 2021
Commenting on this, Solvent Extractors’ Association of India (SEA) Executive Director B V Mehta said the move may have some temporary impact on market sentiments but unlikely to attract imports.
“Basically, government wants to keep the prices of edible oils under check. Even with less duty difference between crude and refined soya and sunflower oils, chances of shipment of refined soya and sunflower oil may not be commercially viable but have some temporary sentiment impact on market,” Mehta said in a statement.According to SEA, the delayed onset of monsoon in Kerala by a week led to delay in sowing. “The Met Department has forecast near normal monsoon, however El Nino is not ruled out completely and may spoil the chances of normal monsoon, which may impact kharif crop and domestic availability of vegetable oils in next oil year 2023-24,” Mehta added.
India imports 60 percent of its edible oil mainly from Argentina, Brazil, Ukraine and Russia to bridge the demand supply gap.
With inputs from PTI.