Import Duty Increased on Crude and Refined Oils

 

New Delhi, Bureau: The central government has increased the import duty on crude palm oil and refined palm olein oils. The basic import duty on crude oils has been set at 20%, and on refined oils, it has been increased to 32.5%. According to a government official, this increase is aimed at limiting imports and encouraging domestic production.

• Details of the Duty Increase: The duty on refined palm oil, soybean oil, and sunflower oil has been raised from 12.5% to 32.5%. Consequently, the effective import duty on crude oils will rise from 27.5% to 35.75%.
• Government's Justification: Officials stated that this step will benefit farmers by providing them with higher income from oilseeds. The decision was made in response to the recent decline in onion prices after the government removed the minimum export price (MEP) and reduced export duties.
• Impact on Onion Prices: Following the government's move to remove the MEP on onions, prices saw a sudden increase. According to market data, the average wholesale price of onions in Lasalgaon, the country's largest onion market, rose to ₹4,700 per quintal from ₹4,267 per quintal in just one week. Market analysts suggest that removing export restrictions has led to an immediate price hike, although it's still uncertain how this will affect the long-term supply and pricing.