The Indian government has raised the customs duty on crude palm oil and refined sunflower oil to 20 per cent and 32.5 per cent respectively, a move expected to significantly benefit farmers by boosting their income, a senior official said on Saturday.
The finance ministry has announced that the basic customs duty on crude palm, soybean, and sunflower seed oil will rise from zero to 20 per cent.
Additionally, the duty on refined palm, soybean, and sunflower oil will increase from 12.5 per cent to 32.5 per cent. As a result, the effective duty on crude oils will climb from 5.5 per cent to 27.5 per cent, and on refined oils from 13.75 per cent to 35.75 per cent.
“These measures will greatly support soya and oilseed farmers, particularly those in Maharashtra and Madhya Pradesh, which are key production regions,” the official stated. The move is part of the government’s strategy to manage domestic edible oil prices, which have been declining for nearly two years.
The government has also removed the minimum export price (MEP) for onions and reduced the export duty from 40 per cent to 20 per cent. The MEP, previously set at USD 550 per tonne, restricted farmers from selling their produce abroad at lower prices.
The duty reduction aims to enhance onion exports, which Commerce and Industry Minister Piyush Goyal believes will boost farmer incomes and agricultural business.
Additionally, the removal of the MEP on basmati rice is expected to increase exports and farmers’ earnings.
Consumer Affairs Secretary Nidhi Khare noted that the outlook for onion availability and prices remains positive due to increased kharif sowing and a substantial amount of onions still in storage.
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