Center extends reduced import duty regime on edible oils till March 2025

An official notification from the Finance Ministry said the reduced duty was scheduled to end in March 2024, but will now continue till March 2025.

Basic import duty on refined soybean oil and refined sunflower oil was reduced from 17.5% to 12.5%. This reduction in duty will reduce the cost of these oils coming into the country, which will reduce domestic prices and provide relief to the people.

Let us tell you that food inflation increased to 8.70 percent in November, which was 6.61 percent in the previous month. Food inflation accounts for almost half of the overall consumer price basket, placing a burden on many households and a cause for concern for the government in view of the general elections in 2024.
 
India is the world's second largest consumer and number one importer of vegetable oils. This country fulfills 60% of its needs through imports.

A large part of this is palm oil and its related products, which are imported from Indonesia and Malaysia. In India, edible oils made mainly from mustard, palm, soybean and sunflower are consumed.

Import duty exemption on edible oils as well as lentils, which is currently valid till March 31, 2024, has also been extended till March 31, 2025.