SRINAGAR: The Government has reduced Basic Customs Duty (BCD) on major imported crude edible oils, a move aimed at lowering domestic prices and easing inflationary pressure linked to higher international edible oil prices.
The Ministry of Consumer Affairs, Food and Public Distribution said the BCD on crude sunflower oil had been reduced from 10 per cent to nil, while the duty on crude soybean oil and crude palm oil had been cut from 10 per cent to 5 per cent.
The Government has also reduced the applicable BCD on refined edible oils while retaining a 19.25 percentage-point difference in import duty between crude and refined oils, the ministry said.
The reduction in duty on crude edible oils is expected to lower their landed cost and facilitate the transfer of the benefit through the domestic supply chain. The measure is intended to provide relief to consumers and help contain food-price and broader inflationary pressures.
The Government has also asked edible oil associations and industry stakeholders to ensure that the reduction in import duty is passed on to consumers.
Industry stakeholders have been advised to immediately revise their prices to distributors and maximum retail prices in line with the lower landed costs. Edible oil associations have also been asked to instruct their members to implement the corresponding price reductions without delay.
