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%.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.