Centre Increases Basic Duty on Refined Oil to 32.5%

New Delhi: The Central government hiked the basic duty on refined oil to 32.5%. Union Minister of Agriculture and Farmers Welfare Shivraj Singh Chouhan said the move by PM Modi-led government aims to boost employment opportunities in the country and improve the condition of farmers.

Basic customs duty on refined palm, soybean and sunflower oils has been hiked from 12.5 per cent to 32.5 per cent. The duty changes are effective from Saturday, a notification said. 

According to Chouhan, this decision will also result in increase in demand for mustard, sunflower and groundnut crops for refinery oil.

Taking to X, the Union Minister wrote, "The Modi government, committed to the development of farmers, has decided to increase the basic duty on refined oil to 32.5%. This decision will increase the demand for mustard, sunflower and groundnut crops for refinery oil.  Farmers will be able to get better prices for these crops and with the increase in refineries in small and rural areas, employment opportunities will also increase there."

While the basic customs duty on crude palm, soybean and sunflower seed oil has been increased to 20 per cent from nil. Apart from Madhya Pradesh and Maharashtra , the other key oil seed producing states include Gujarat , Rajasthan , Karnataka, Andhra Pradesh, Uttar Pradesh, Telangana and Tamil Nadu.

Meanwhile, the duty on onion export has been slashed to 20 per cent from 40 per cent. There is no export duty on 'Bangalore rose onion.'