Heavy duty on vegetable oil

The present 28 per cent duty imposed on imported vegetable oils has been revised to Rs. 40 per kilogram as a measure to boost domestic coconut cultivators help coconut manufacturers and manufacturers of raw material for bakeries from the impact of declining prices of vegetable oils in the international market, a Finance Ministry communique states.

Accordingly, 28 per cent duty or the new special duty of Rs. 40 per kilo (whichever is more) would apply to the imports of the vegetable oils. A metric ton of vegetable oil which did cost Rs. 100,000 in January 2008 had come down to Rs. 65,000 in November, registering a 35 per cent reduction.