New Delhi, Jan 16: In a bid to keep cooking oil prices on simmer, the government on Tuesday sweetened the deal for consumers by extending lower import duties on edible oils while slapping a hefty tax on molasses exports.
Effective January 18, a 50% export duty will be levied on molasses, a by-product of sugarcane and key ingredient in alcohol production. This move aims to discourage overseas sales and ensure sufficient molasses availability for domestic ethanol production, thereby potentially lowering fuel costs.
Meanwhile, the government extended the existing concessional duty rates on imports of crude and refined palm, soybean, and sunflower oils by a year, until March 31, 2025. This extension comes as a relief to millions of Indian households grappling with fluctuating food prices.
“The extension of lower import duties will help in moderating domestic edible oil prices,” the finance ministry statement said. The move follows a reduction in the basic import duty on refined soybean and sunflower oil from 17.5% to 12.5% in June last year.
Furthermore, the announcement coincides with a period of heightened geopolitical tensions in sunflower oil-producing regions like Ukraine and Russia. By diversifying import sources and ensuring domestic molasses availability, the government aims to bolster India’s edible oil supply and buffer against potential external shocks.
The impact of these measures remains to be seen, but for now, Indian consumers can breathe a sigh of relief, hoping for a smoother ride on the culinary rollercoaster of cooking oil prices.
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