The Centre on Tuesday cut the import duty on crude palm oil (CPO) to 10 per cent from 15 per cent. The new duty structure will be effective from Wendesday (June 30) and continue till September 30.
In a notification issued late in the evening, the import duty on RBD (refined, bleached and deodrised) palm oil, RBD palmolein, RBD palm stearin and any palm pil other than crude palm oil has also been lowered to 37.5 per cent from 45 per cent.
However, BV Mehta, Executive Director, Solvent Extractors' Association of India, said that since RBD falls into restrictive category, the reduction in duty will not have any impact.
Effective reduction
The cut in duty on CPO will result in effective reduction of ₹4,500 a tonne. However, Mehta said that some of the global suppliers could increase the prices, which mean India may not benefit much. Still, “Cutting down duty for three months period intends to balance the interest of consumer and farmers as consumer will get the benefit of lower price now and when fresh crop will be there in October, farmers will not have to lose as period for lower duty will be over then,” Mehta said.
The move comes at a time when edible oil prices have increased sharply compared with the same period a year ago. Though prices in global market have come down by at least 25 per cent in the past month, prices are still considered high.
India imports nearly two-thirds of its edible oil demand. It buys palm oil from Indonesia and Malaysia, and soy oil and sunflower oil come from Argentina, Brazil, Ukraine and Russia.