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The Central government has reduced the import duty on refined sunflower oil and refined soyabean oil from 17.5 per cent to 12.5 per cent. In a late evening Customs notification on Wednesday, the Government said the new duty structure will be effective from June 15.
BV Mehta, Executive Director of Solvent Extractors’ Association (SEA) of India, said now all crude edible oils – crude palm oil, crude sunflower oil and crude soyabean oil -- attract import duty of 5 per cent. Their refined oils attract import duty of 12.5 per cent plus cess at 10 per cent on import duty.
Stating that the Government wanted to keep prices of edible oil in check, he said shipment of refined soyabean or refined sunflower oil was not commercially viable, even with a lower duty difference between crude and refined soyabean and sunflower oils. However, it may have some temporary sentimental impact on the market, he added.
President of the Indian Vegetable Oil Producers’ Association (IVPA), Sudhakar Desai, told businessline there is nothing much in the short-term. Eventually, it would become a problem for the Indian refining industry, similar to what was happening in the case of palm oil. The industry has been seeking an increase in the differential to support the struggling Indian refining industry, he said.
Also read: India’s H1 vegetable oil imports up 21%; rising refined palm oil shipments cause of concern: SEA
During the first six months of the oil year 2022-23 (November-October), India imported 13.67 lakh tonnes (lt) of crude sunflower oil, as against 11.10 lt in the corresponding period of the previous oil year, and 17.25 lt of crude soyabean degummed oil, against 22.06 lt in the corresponding period of 2021-22.
According to SEA data, there was no import of refined sunflower oil and refined soyabean oil in the first six months of the oil year 2022-23.
During November-April of 2022-23, India imported 9.53 lt of crude soyabean degummed oil from Argentina, followed by 7.02 lt from Brazil. Russia exported 3.73 lt crude sunflower oil, followed by Ukraine at 3.40 lt, and Argentina at 1.06 lt during the period.
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