New Delhi: In a bid to protect its domestic industry, India on Friday hiked the import duty on edible oils by 5 percent.
The Central Board of Excise and Customs here said in a notification that the customs duty on edible oil in all categories had been increased by 5 percent. Duty on crude edible oil has been increased from 7.5 percent to 12.5 percent while on refined edible oil from 15 percent to 20 percent.
A study by industry body Assocham on Thursday said, Deficient monsoon is building pressure on edible oils, which may send India’s import bill of this key cooking ingredient soaring to $14 billion in the current financial year.
The deficit in average rainfall so far for 2015-16 is 12 percent, according to the latest available information.
“Therefore, assuming that the production of oil seeds for 2015-16 remains at the level of 2014-15 and anticipating a rise in demand, vegetable oils imports would reach around $14 billion for 2015-16, which was around $10 billion last year,” said the study by Associated Chambers of Commerce and Industry of India (Assocham).
These imports were $7.2 billion in 2013-14, increasing by over 46 percent in the following year.