The Indian government reduced numerous vegetable oil import taxes ahead of the holiday season, a federal agency said last week.
India reduced its basic duty on crude palm oil (CPO) to zero from the 2.5pc applied last month, the Ministry of Consumer Affairs, Food and Public Distribution said last week. The lowered import taxes are effective from 14 October to 31 March, 2022.
India, the world’s largest edible oils consumer, lowered the import duties ahead of the local festival season as its domestic market is sensitive to elevated pricing.
A separate tax, India’s Agriculture Infrastructure and Development Cess (AIDC), also was lowered from 20pc to 7.5pc for CPO. This brings total import tax cost down by 15 percentage points for CPO.
The basic duty on refined, bleached and deodorised palm oil, edible grade soybean oil and sunflower oil has been lowered to 17.5pc from 32.5pc.
This is the third time India has lowered the import duty of palm oil this year in an effort to ease elevated consumer prices.