Government exempts duty on import of crude soybean oil, sunflower seed oil

The government has exempted customs duty and agricultural infrastructure and development cess levied on crude soybean oil and crude sunflower seed oil, subject to the conditions of tariff rate quota authorisation (TRQ). The nil customs rate will be applicable from May 11 till June 30.

The notification from the finance ministry released on Wednesday said this would apply to both degummed and non-degummed soybean oils.

TRQ refers to the tariff rate quota, which is the volume of imports that come into India at a specific or nil duty. However, upon achieving the quota, the normal tariff applies to additional imports.

Earlier exemptions by government

Earlier, the government discontinued imports of crude soybean and sunflower seed oils under TRQ in January and March, respectively.

The government has earlier exempted customs duty and agriculture infrastructure development cess on 20 lakh metric tonnes yearly import of crude soybean oil and crude sunflower oil each, to ease domestic prices.

India's vegetable oil imports

India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its requirement through imports. A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia.

In line with the prevailing global markets to benefit the consumers, an Indian edible oil industry body issued an advisory to its members appealing to reduce the retail and wholesale prices.

"Members have responded favourably and started announcing a further reduction in MRP and wholesale price of edible oils of their brands," the apex industry body The Solvent Extractors' Association of India said in a release on May 5.

India majorly consumes mustard, palm, soybean, and sunflower-derived edible oils.

Earlier, the industry body had a meeting with food and public distribution secretary Sanjeev Chopra to discuss the prevailing edible oil prices.