The Indian government’s decision to allow duty-free import of crude soybean oil and sunflower oil, coupled with limiting of the basic import tax on crude palm oil to 10%, will bring cheer to the inflation-hit consumers as well as FMCG players.
According to the analysts Business Insider spoke with, the current relaxations are going to bring down the cost of goods like — cooking oils, food items and even cosmetics. FMCG companies will have to pay much less for their raw material like sunflower and palm oil which goes into these products.
The benefits of this reduction will be accrued in the next three months, Suman Jagdev, partner at Praxis Global Alliance told Business Insider India. He noted that the companies importing these edible oils will have to pay less, and the perk would be transferred to customers.