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The Indian government has reduced the Basic Customs Duty (BCD) on imported crude edible oil from 20% to 10%. The move, announced on Wednesday (June 11, 2025), is aimed at reducing retail prices for consumers and will impact sunflower, soybean, and palm oil.
The reduction comes in response to rising global prices and follows an earlier BCD hike in September, according to a statement from the Ministry of Consumer Affairs, Food and Public Distribution.
"Import duty on edible oils is one of the important factors that impact the landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers," said the statement.
The reduction is also aimed at incentivising the refining of crude edible oils in India by widening the import duty differential between crude and refined oils from 8.75% to 19.25% and making crude edible oil imports easier than the imports of refined products.
The government has also asked industry stakeholders to pass on benefits to consumers immediately. "Industry stakeholders are expected to adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower landed costs with immediate effect," the statement said.
"A meeting with leading Edible Oil Industry Associations and industry was held under the Chairmanship of Secretary, Department of Food and Public Distribution, Government of India, and an advisory was issued to them to pass on the benefits from this duty reduction on to consumers," the statement added.
Source: Online/OFA
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