NEW DELHI: The government on Tuesday scrapped customs duty and agriculture infrastructure development cess on the import of crude soyabean oil and crude sunflower oil for 20 lakh metric tonnes each per year to ease local prices.
The duty-free import of 20 lakh MT per year will be applicable for two fiscals, 2022-23 and 202324, for crude soyabean oil and crude sunflower oil, according to a notification by the Finance Ministry. This would mean till March 31, 2024, a total of 80 lakh MT on crude soyabean oil and crude sunflower oil could be imported duty free.
The exemption will help cool domestic prices and control inflation. “This will provide significant relief to the consumers, the CBIC tweeted. Solvent extractors of India (SEA) Executive Director BV Mehta said the prices of soyabean oil are expected to come down by Rs 3 per litre.
The government issued notification regarding tariff rate quota of 20 lakh tonnes each for crude soyabean and sunflower oils. Under the TRQ a customs duty and agri infra development cess of 5.5 per cent would be removed, Mehta said.
When asked about the likely impact on retail prices, Mehta said that the prices of soyabean oil are expected to come down by Rs 3 per litre. Mehta further said the country is likely to import 35 lakh tonnes of crude soyabean oil and about 16-18 lakh tonnes of crude sunflower oil this fiscal.
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