Edible oil duty cut may ease pressure on namkeen prices and pack sizes
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The government reduced import duties on edible oils effective September 24 to help food companies manage rising costs.
- ✓While this move could ease pressure on namkeen prices and pack sizes, firms like Bikaji Foods said they will use the savings to rebuild margins instead of increasing product weights right now.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
A ₹10 packet of namkeen has two prices: the one printed on the wrapper and the one measured in grams. India's edible oil duty cut could help leading food companies protect both this festive season, after rising input costs pushed parts of the industry toward price hikes and smaller packs.
Effective September 24, the government reduced import duties on crude palm and soybean oils and eliminated the duty on crude sunflower oil. Including levies, effective duties fell to 11 per cent for palm and soybean oils and 5.5 per cent for sunflower oil.
India Ratings estimates landed costs could decline by 4-5 per cent for palm and soybean oils and 8-9 per cent for sunflower oil. However, the pass-through will depend on global prices and the pace at which companies exhaust higher-cost inventories.
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