The government reduced basic customs duty on crude palm oil to 10 per cent which will help bring down the edible oil prices in the retail market on Tuesday.
The Central Board of Indirect Taxes and Customs (CBIC) in a notice reduced basic customs duty on crude palm oil to 10 per cent and refined palm oil to 37.5 per cent which will be effective from Wednesday,June 30.
The effective duty includes cess and other charges on crude palm oil will be 30.25 per cent while for refined palm oil it would be 41.25 per cent.
Earlier, the basic customs duty on crude palm oil was 15 per cent, while it was 45 per cent for all other categories of palmolein such as RBD Palm Oil, RBD Palmolein, RBD Palm Stearin and any Palm Oil excluding Crude Palm Oil.
India is the world’s leading vegetable oil buyer, and had imported 4,00,506 tonne palm oils in May 2020.
The country’s total vegetable oil imports rose by 68 per cent to rupees 12.49 lakh tonne in May 2021 compared to rupees 7.43 lakh tonne in the year ago period.
In the beginningof this month, the government had reduced the tariff value for the import of edible oil including palm oil, by up to USD 112 per tonne. To which, it could result in lower prices of edible oil in the domestic markets.