India Allows Two-Year Duty-Free Import of Crude Soybean Oil, Sunflower Oil

The Indian government on May 24 removed customs duty and the Agriculture Infrastructure and Development Cess (AIDC) on yearly import of 2 million MT each of crude soybean oil and sunflower oil until March 2024 to ease domestic prices, the Finance Ministry said in a notification.  The duty-free import, applicable for two fiscal years (2022-23, 2023-24), comes as India, the world’s biggest vegetable oil importer struggles to contain spiraling local edible oil prices in recent months. 
India has already abolished the basic import tax on crude palm oil, crude soybean oil and crude sunflower oil, but continues with the 5% AIDC on these grades of edible oil. The reduction in AIDC duty could bring down domestic prices and help consumers and domestic refiner cushion the impact of surging food costs.