Govt cuts Customs duty by 10% on crude palm oil
On Thursday, the government reduced the basic customs duty on crude palm oil to 27.5%, a move that would increase the availability of the commodity in the domestic market. The duty cut would also help cool off a rise in edible oil prices in domestic markets.
The Central Board of Indirect Taxes and Customs (CBIC) in a notification said the basic customs duty (BCD) rate on crude palm oil has been revised to 27.5% with effect from 27 November from 37.5% earlier.
Palm oil constitutes over 40% of India's total edible oil consumption. Edible oil is India's third-largest imported commodity after crude oil and gold. The country is also the world's largest importer of edible oil and buys around 15 million tonnes annually from countries including Malaysia and Indonesia.
Earlier in January, the government had slashed customs duty on crude palm oil from 40% to 37.5% for imports from the Association of South-East Asian Nations (ASEAN) countries.