The government has slashed the base custom duties on palm oil, soyoil and sunflower oil to contain spiralling edible oil prices.
The base import tax on crude palm oil has been reduced to 2.5 per cent from 10 per cent, while the tax on crude soyoil and sunflower oil has been cut to 2.5 per cent from 7.5 per cent, the finance ministry said in a notification issued late on Friday. The new rates came into effect from Saturday.
The import duty along with the cess on crude palm oil will be 24.75 per cent against 30.25 per cent. On RBD (refined, bleached, and deodorized) palm oil, it will come down to 35.75 per cent from 41.25 per cent.
For crude degummed soyoil, the new rate will be 24.75 per cent against 30.25 per cent and on refined soybean oil, the rate has been lowered to 35.75 per cent from 41.25 per cent.
“The domestic bullishness in edible oils is led by low arrival of mustard seeds. We had suggested a reduction in import duty on rapeseed oil in line with soya and sunflower oil. This will also go a long way in cooling all edible oil prices as internationally edible oil prices have started showing some weakness,” said B. V. Mehta, executive director, Solvent Extractors’ Association of India.