Reducing duty on refined oil imports won't cool prices: Edible oil firms

The government's decision to reduce the import duty on refined soybean oil and refined sunflower oil from 17.5 per cent to 12.5 per cent will not have any immediate impact on the retail prices of these oils, according to Emami Agrotech, Adani Wilmar, and Gemini Edibles and Fats India, The Economic Times reported on Friday.

The companies said it takes about 50 days for the oils to be imported to India, during which they lose their quality and original taste. Additionally, the country is not currently importing any refined soybean or sunflower oil.

Emami Agrotech CEO Sudhakar Desai said there is no surplus refining capacity in countries that export soya and sunflower oils and they do not have preferential lower duty for refined oils.

“So, bulk imports of refined sunflower and soybean oils may not happen in the short term. However, it opens up the Indian market for imports of refined oils and refined palm imports will continue unless the duty differential is widened,” he added.

Currently, the country imposes an import duty of five per cent on all crude edible oils, such as crude palm oil, crude sunflower oil, and crude soybean oil. Refined edible oils, on the other hand, are subject to an import duty of 12.5 per cent, plus an additional 10 per cent cess on import duty.