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Export Import Policy on Edible Oils


The country has to rely on imports to meet the gap between demand and supply. Import of edible oil is under Open General License. In order to harmonize the interests of farmers, processors and consumers and at the same time, regulate large import of edible oils to the extent possible, import duty structure on edible oils is reviewed from time to time. W.E. F. 14.06.2018, the import duty on all crude and refined edible oils was raised to 35% and 45% respectively while the import duty on Olive oil was increased to 40%. With effect from 01.01.2020, the import duty on Crude and Refined Palm Oil was revised to 37.5% and 45% respectively. With effect from 08.01.2020, import policy of Refined Palm Oil is amended from ‘free’ to ‘Restricted’ category. With effect from 27.11.2020, the import duty on crude palm oil has been revised from 37.5% to 27.5%

In order to ensure availability of edible oil in the country, export of edible oil has been banned w.e.f. 17.03.2008, which was extended from time to time. With effect from 06.02.2015, export of rice bran oil in bulk has been permitted. With effect from 27.03.2017, export of groundnut oil, sesame oil, soyabean oil and maize (corn) oil has been permitted. With effect from 06.04.2018, export of all edible oils except mustard oil was made free without quantitative ceiling; pack size etc, till further orders. Export of mustard oil is permitted in packs of up to 5 Kg with a Minimum Export Price (MEP) of USD 900 per MT.

 

Major recent decisions in respect of edible oils 

  • Vide Notification No. 43/2020-customs dated 26.11.2020, the import duty on Crdue palm Oil has been revised from 37.5%  to 27.5% w.e.f. 27.11.2020.
  • Vide Notification No. 42/2019-Customs dated 31.12.2019, import duty on Crude and Refined Palm Oils was revised to 37.5% & 45% respectively for imports from ASEAN Countries.
  • Vide Notification No. 39/2015-2020 dated 08.01.2020, import policy of Refined Palm Oil is amended from ‘free’ to ‘Restricted’ category.
  • Vide Notification No. 84/2018-Customs and No. 82/2018-Customs dated 31.12.2018, import duty on Crude and Refined Palm Oils was revised to 40% & 45% respectively for imports from Malaysia and 40% & 50% respectively for import from ASEAN Countries.
  • Vide Notification No. 01/2015-20 dated 06.04.2018 export of all edible oils except Mustard oil made free without quantitative ceiling, pack size etc till further orders. Export of Mustard oil is permitted to be exported in consumer packs of upto 5Kg with a minimum export price of USD 900.
  • Vide Notification No. 01/2015-20 dated 06.04.2018 export of all edible oils except Mustard oil made free without quantitative ceiling, pack size etc till further orders. Export of Mustard oil is permitted to be exported in consumer packs of upto 5Kg with a minimum export price of USD 900.
  • Vide Notification No. 29/2018 dated 01.03.2018, customs duty on Crude Palm Oil increased to 44% and customs duty on Refined Palm/Palmolein increased to 54%.
  • With the implementation of FSSAI Act, 2006 w.e.f. 5th August, 2011, the edible oil industries is now governed by FSSAI for issue of license, safety and standard parameters. However, the data monitoring of procurement for the edible oil industries are being administered by the Directorate under Vegetable Oil Products, Production and Availability (Regulation) Order, 2011.