The Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD) on September 17, 2024, advised Edible Oil Associations to maintain MRP of oil till availability of edible oil stocks imported at 0% & 12.5% Basic Customs Duty (BCD).
The following has been stated:
• It has implemented an increase in the Basic Customs Duty on various edible oils to support domestic oilseed prices. Effective September 14, 2024, the Basic Customs Duty on Crude Soybean Oil, Crude Palm Oil, and Crude Sunflower Oil has been raised from 0% to 20%, making the effective duty on crude oils to 27.5%. Additionally, the Basic Customs Duty on Refined Palm Oil, Refined Sunflower Oil, and Refined Soybean Oil has been increased from 12.5% to 32.5% making the effective duty on Refined oils as 35.75%.
• These adjustments are part of the government's ongoing efforts to bolster domestic oilseed farmers, especially with the new soybean and groundnut crops expected to arrive in markets from October 2024.
• The decision follows comprehensive deliberations and is influenced by several factors: increased global production of soybean, oil palm, and other oilseeds; higher global ending stocks of edible oils compared to last year; and falling global prices due to surplus production. This situation has led to a surge in imports of inexpensive oils, exerting downward pressure on domestic prices. By raising the landed cost of imported edible oils, these measures aim to enhance domestic oilseed prices, support increased production, and ensure that farmers receive fair compensation for their produce.
[Press Release ID: 2055643]
