India cuts edible oil import duty ahead of festivals

…crude soy oil will fall to 11% from 16.5%, while crude sunflower oil will attract a total duty of 5.5%, down from 16.5%. The duty cut comes ahead of the festive season, when demand for edible oils typically increases. " Anticipating a reduction in import duty, refiners had held back on purchases, but they will now step up imports to meet festival-season demand, " said Mumbai-based Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage. Reuters reported last week that India was considering a reduction in edible oil import duties to provide relief to…

…soy oil and sunflower oil forming the bulk of imports. Major suppliers include Malaysia, Indonesia, Argentina, Russia and Ukraine. Sunflower oil is expected to be the biggest beneficiary of the latest duty reduction. The move makes sunflower oil more attractive to refiners and could potentially divert some demand away from soy oil and palm oil, said Aashish Acharya, vice president at Patanjali Foods Ltd. The impact of the duty cuts on retail prices will depend on how lower import costs are reflected across the supply chain as refiners increase purchases to…