Consumer Staples - Edible Oil Import Duty Raised; Price Hikes Likely; Volume, Margins Can Dip: Systematix

Systematix Research Report

The Government has sharply increased import duties on crude and refined edible oils – palm, sunflower, soy – for an effective hike of ~22%, from 5.5%/ 13.75% to 27.5%/ 35.75% for crude/ refined oils respectively. This is significant since ~95%/ 95%/ 70% of India’s palm/ sunflower/ soybean oil requirement is met through imports, respectively.

The hike also has far-reaching implications for several fmcg categories – apart from cooking oils, crude palm oil derivative palm fatty acid distillate is a key input in HPC products including soaps, laundry detergents, shampoos and cosmetics.

In addition, refined palm oil is a key input in food products like biscuits, noodles, snack foods, chocolates and cakes.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.