Central government cuts crude palm oil import duty, edible oil will become cheaper
The government has reduced the effective duty on import of crude palm oil from 8.25 per cent to 5.5 per cent. This step of the government will help domestic oil producers and control the inflation of edible oils. Basic customs duty on crude palm oil (CPO) is already nil. The Central Board of Indirect Taxes and Customs (CBIC) has also reduced the Agri Infra Development Cess on palm oil from 7.5% to 5%. Which is applicable from 13th February.
CBIC has said in a notification that the period of reduction of import duty on crude palm oil and other crude oils has been extended for 6 months till 30 September.
The edible oil-related industry body SEA has long been demanding to bring down the effective duty difference between crude palm oil and refined palm oil to 11 percentage points. The effective import duty on refined palm oil currently stands at 13.75 per cent. The price of edible oil has remained at a high level since last year. The government had on several occasions cut import duty on palm oil domestically. India meets most of its edible oil requirement through imports. Palm oil also has a major share in imported edible oils.
