Marico, Ruchi Soya, HUL, Godrej Agrovet to gain from import duty cut on palm, soyabean and sunflower oils

Marico, Ruchi Soya, HUL, Godrej Agrovet to gain from import duty cut on palm, soyabean and sunflower oils

Marico, Ruchi Soya, Godrej Agrovet, HUL are expected to benefit from the Government’s decision to cut import duty on refined grades of palm oil, soybean oil and sunflower oil.
The import duty on the above oils stands reduced to 32.5% from 37.5%.
The base import tax on crude palm oil has been slashed to 2.5% from 10%, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5% from 7.5%, the government said in a notification late on Friday.

Ruchi Soya is among the largest manufacturers of edible oil in India.
Patanjali had acquired the erstwhile bankrupt firm known for the Nutrela brand of products in 2019 for around Rs 4,350 crore through an insolvency and bankruptcy code (IBC) process. Ruchi Soya’s shares relisted on the exchanges on 27 January 2020.

India fulfils more than two-thirds of its edible oil demand through imports. The country imports palm oil mainly from top producers Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia.
In a separate notification, the government increased the agriculture infrastructure and development cess on crude palm oil to 20% from the earlier 17.5%.

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