Cut in import duty on crude cooking oil to boost local processing

Sharp Rise

- SANDIP DAS

THE GOVERNMENT'S MOVE to cut basic custom duty on crude palm, soybean and sunflower oils to 10% from 20% will restrict import of refined oils and boost domestic processing, industry associations — Solvent Extractors Association of India (SEA) and Indian Vegetable Oil Producers' Association (IVPA) have stated. "This is a win-win situation for veg oil refiners as well as consumers, as local price will go down due to lower duty on crude oils," BV Mehta, executive director, SEA, said. Following the announcement of import duties on Friday, the effective import duty, including basic custom duty and cess, on these three oils is reduced to 16.5% from 27.5% earlier.