The Indian government announced a reduction in basic customs duty rates on vegetable oil imports, covering both crude and refined oils, including palm oil, soybean oil, and sunflower oil, in a bid to curb soaring prices ahead of the major festival season. Crude palm oil and crude soybean oil will see duties cut from 10% to 5%, while refined palm oil and refined soybean oil will drop from 32.5% to 27.5%. Crude sunflower oil will be reduced from 10% to 0%, and refined sunflower oil from 32.5% to 22.5%. When the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge are included, the total effective import duty on crude palm oil and crude soybean oil will fall from 16.5% to 11%, and on crude sunflower oil from 16.5% to 5.5%. The tax cuts follow a nearly 20% rise in vegetable oil prices in India over the past year and are aimed at boosting consumption during the religious festival season between September and November. India currently relies on imports for about two-thirds of its total vegetable oil demand, sourcing from Malaysia, Indonesia, Argentina, Russia, and Ukraine.
India cuts import duty on crude palm oil from 10% to 5% (effective 16.5% to 11%), supporting palm oil demand.
India cuts import duty on crude soybean oil from 10% to 5% (effective 16.5% to 11%), boosting import demand for soybean oil.
