The government is aware that nearly 30 lakh metric tonnes (LMT) of edible oil stocks imported at lower duties are available, which is sufficient for 45 to 50 days of domestic consumption.The DFPD’s release also highlighted that the industry has been advised to align domestic prices with international prices from time to time to ease the burden on consumers.The government implemented the BCD increase to protect domestic oilseed prices as new oilseed crops are expected to arrive in the market from October 2024. The BCD on crude soybean oil, crude palm oil, and crude sunflower oil has been raised from 0% to 20%, making the effective duty on crude oils 27.5%. Additionally, the BCD on refined palm oil, refined sunflower oil, and refined soybean oil has increased from 12.5% to 32.5%, making the effective duty on refined oils 35.75%.This decision follows comprehensive deliberations and is influenced by several factors, including increased global production of soybean, oil palm, and other oilseeds, higher global ending stocks of edible oils compared to last year, and falling global prices due to surplus production.
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