Government has slashed import duty on refined palmolein from 50 per cent to 45 per cent and crude palm oil (CPO) from 40 per cent to 37.5 per cent with immediate effect. A notification in this regard has been issued by the finance ministry. The duty cut has been made under the ASEAN agreement and the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA).

The domestic palm oil refining industry has opposed the move saying it will hurt them and oilseeds farmers.