The Indian government late Friday lowered the import service for raw equipment oils such as Palm, soyboic and sunflower oil from 27.5 percent to 16.5 percent. By March 31, 2026, however, it expanded the duty -free import of yellow peas.
In a Gazette notification it says that the compulsory reduction will come into force from May 31 (Saturday). The sector to the cooking oil has welcomed the office cut because it expands the difference in service between rough and edible menu to 19.25 percent.
Sudhakar Desai, President of the Indian Vegetable Producer Association, said that after an increase in the service differential, food oil processors as a first-class palm oil-producing countries such as Malaysia and Indonesia subsidized to subsidize the exports of refined, bleached and deodorized (RBD) palm oil and palm oil.
Effective duty
From May 31, raw equipment oils – palm, soy, rapeseed and sunflowers – will attract a fundamental duty of 10 percent, 5 percent agricultural, 10 percent social well -being, which takes over the effective obligation to 16.5 percent.
The obligation for refined food oils – palm, soy, rapeseed and sunflowers – 32.5 percent, with the 10 percent social assistance being equipped by 35.75 percent.
“We asked for a differential of 20 percent. After today’s revision, the differential is 19.25 percent. We will take that,” said Desai.
The solvent extractors of the India (SEA) said the government’s decision to increase the compulsory differential between gross and sophisticated eating oil from 8.25 percent to 19.25 percent will help to create a level field for domestic refineries and to contribute to the stabilizing late oil prices for Indian consumers.
To benefit producers
Desai said it would also help the producer, since it would in particular contain the imports of refined palm oil.
As a result of these subsidies last year, the imports of RBD rose to 35 percent of the total palm oil imports. Sanjeev Asthana, President of Sea, said that imports of refined palmolia and demand will move back to raw arm oil (CPO). It will revive the domestic refiner sector. “This step has no influence on the total volume of imports to the cooking oil and will probably not cause the upward pressure on the price oil price,” he said.
The other feature of the arrangement on Friday is that the relief that countries like Nepal have received from the South Asian free trade agreement is reduced. Nepal had a 35 percent service advantage, which exports at least one more million tons of palm oil to India.
Support refineries
“This service advantage was reduced to a certain extent. It will help the industry,” said the IVPA president.
India imports a considerable volume of palm oil, mainly from Indonesia and Malaysia. In the past, Indian refineries have imported CPO, and significant investments in the Palmölraffining infrastructure on a harbor base were made to meet the growing domestic demand for Palmolia. The import of CPO enables added value within the country and supports the generation of employment in the refiner sector, said Asthana.
The SEA President said that the cost and freight price of RBD Palmolia amount to approximately 45 to 50 US dollars per ton of lower than CPO. It promotes sophisticated imports at the expense of domestic value.
Asthana said this trend was tightened by the export policy of the supplier countries, which impose higher export tasks for CPO (raw material) and lower tasks for refined palmolia (finished goods).
Moving the trade in yellow peas
On the other hand, the center’s decision to enable the duty -free import of yellow peas were annoyed. “Yellow pea imports are responsible for the current Bärische Prize prize prices. This also has an effect because they achieve returns under the minimum support price for plants such as chickpeas (Chana/gram),” said a dealer without identifying themselves.
A trading expert said that the duty-free import would prefer Russia and Canada, while the import of impulses 2023-24 could continue to rise from the record of 6.63 million tons.
Published on May 30, 2025