Parliament Question: Import Duty on Edible Oil

**Executive Summary:** This document presents the Indian government's response to Lok Sabha Unstarred Question No. 311 regarding import duties on edible oils. It details recent import duty increases on crude and refined edible oils to support domestic oilseed farmers, provides data on import volumes, revenues, and Minimum Support Prices (MSP) for soybean and rapeseed mustard, and outlines the impact of these changes. The effective dates for the current import duties are May 30, 2025, and September 14, 2024. **Key Points / Main Content:** * **Import Duties on Edible Oils:** * Crude Palm Oil, Crude Sunflower Oil, and Crude Soybean Oil: 16.5% (w.e.f. 30.05.2025) * Refined Palm Oil, Refined Sunflower Oil, and Refined Soybean Oil: 35.75% (w.e.f. 14.09.2024) * **Import Volumes (LMT):** * **Major Crude Oil Imports (Oil Year Nov-Oct):** | Oil Year | Crude Palm Oil | Crude Soybean Oil | Crude Sunflower Oil | | :------- | :------------- | :----------------- | :------------------- | | 2019-20 | 68.15 | 33.68 | 25.26 | | 2020-21 | 74.66 | 28.91 | 19.09 | | 2021-22 | 59.43 | 41.18 | 19.92 | | 2022-23 | 75.00 | 37.93 | 28.87 | | 2023-24 | 70.16 | 31.41 | 34.91 | * **Major Refined Oil Imports (Oil Year Nov-Oct):** | Oil Year | RBD Palmolein | Refined Soybean | Refined Sunflower | | :------- | :------------ | :-------------- | :---------------- | | 2019-20 | 4.3 | 1.59 | 0.02 | | 2020-21 | 8.48 | 3.73 | 0.20 | | 2021-22 | 21.08 | 1.01 | 0.11 | | 2022-23 | 22.95 | 0.17 | 0.02 | | 2023-24 | 18.98 | 0.25 | 0.06 | * **Revenue Collected (INR):** * **Financial Year (FY) Revenue Collected (CTH 1507 to 1515):** | FY | Revenue Collected | | :-------- | :----------------------- | | 2020-21 | 1,92,34,12,44,863 | | 2021-22 | 3,14,99,70,18,831 | | 2022-23 | 1,43,85,13,43,662 | | 2023-24 | 1,36,35,35,49,186 | | 2024-25 | 2,56,49,62,09,227 | * **Minimum Support Price (MSP) (INR per quintal):** * **MSP for Soybean and Rapeseed:** | Crop | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | | :---------------- | :------ | :------ | :------ | :------ | :------ | | Soybean (yellow) | 3950 | 4300 | 4600 | 4892 | 5328 | | Rapeseed/Mustard | 4650 | 5050 | 5450 | 5650 | 5950 | * **Procurement at MSP (LMT):** * **Quantity Procured under PSS:** | Year | Mustard Seed | Soybean | | :------ | :----------- | :------ | | 2020-21 | 0.00001 | 0.00004 | | 2021-22 | Nil | Nil | | 2022-23 | 11.14 | Nil | | 2023-24 | 12.08 | 0.07 | | 2024-25 | 5.01 | 19.96 | * **Historical Import Duty Rates:** * Import duty rates for crude and refined palm oil, sunflower oil, and soybean oil have varied over the past five years (detailed in Annexure 1). **Impact Analysis:** **Domestic Oilseed Farmers:** * *Impact:* The increased import duties are intended to support domestic oilseed prices and increase farmer income. * *Action Required:* Farmers should monitor market prices and government procurement activities to maximize benefits from the revised import duties. **Edible Oil Importers:** * *Impact:* Increased import duties will raise the cost of imported edible oils. * *Action Required:* Importers need to adjust their procurement strategies based on the new duty structure, potentially exploring alternative sourcing or adjusting pricing. **Consumers:** * *Impact:* Edible oil prices for consumers may increase due to higher import duties. * *Action Required:* Consumers may need to adjust their purchasing habits based on price changes in the edible oil market. **Government:** * *Impact:* Increased revenue collection from import duties. * *Action Required:* The government needs to monitor the impact of the duty changes on domestic prices and farmer income, and adjust policies as needed.

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