Govt authorizes duty-free imports of crude soyabean & sunflower oil worth 20 lakh MT per year

The Finance Ministry said in a notification that a duty-free import of 20 lakh MT of crude soyabean oil and crude sunflower oil will be available for two fiscal years (2022-23 and 2023-24).

To cut local costs, the government eliminated customs duty and an agriculture infrastructure development cess on the import of crude soyabean oil and crude sunflower oil for a total of 20 lakh metric tonnes per year.

According to a notification from the Finance Ministry, a duty-free import of 20 lakh MT of crude soyabean oil and crude sunflower oil will be available for two fiscal years, 2022-23 and 2023-24.

This means that a total of 80 lakh MT of crude soyabean oil and crude sunflower oil might be imported duty-free until March 31, 2024.
The exemption will assist to keep domestic costs down and inflation under control.

“This will provide significant relief to the consumers”. The CBIC tweeted.

B V Mehta, Executive Director of Solvent Extractors of India (SEA). Predicted that soyabean oil costs would drop by Rs 3 per litre.

The government issued notification regarding tariff rate quota of 20 lakh tonnes each for crude soyabean and sunflower oils. A 5.5 percent customs charge and agri-infrastructure development cess would be eliminated under the TRQ, according to Mehta.

To keep costs from spiraling out of control, the government lowered excise duties on gasoline and diesel and cancelled import duties on some raw materials used in the steel and plastic industries last week. Iron ore and iron pellet export duties have also been raised.

WPI (wholesale price inflation) hit a new high of 15.08 percent in April. While retail inflation hit a near-eight-year high of 7.79 percent.

The Reserve Bank held an unscheduled meeting earlier this month to raise the benchmark interest rate. By 40 basis points to 4.40 percent due to high inflation.

When questioned about the impact on retail pricing. Mehta told PTI that soyabean oil costs are projected to fall by Rs 3 per litre.

According to Mehta, the country is expected to import 35 lakh tonnes of crude soyabean oil and 16-18 lakh tonnes of crude sunflower oil this fiscal year.

He also stated that the group has requested a reduction in import duties on rice bran oil. And canola oil to improve domestic supplies and keep retail costs in check.

“We urge the government to take a decision on this demand at the earliest,” he added.

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