The shares of several edible oil companies such as Adani Wilmar, Patanjali Foods and Kriti Nutrients jumped by up to 7.5 per cent in Friday’s trade, after the Indian government announced that they would allow the import of edible oils at lower tax rates until March 2025.
Adani Group’s fast-moving consumer goods (FMCG) firm Adani Wilmar, which is involved in the manufacturing and selling of cooking oil, saw its shares rise by 5.2 per cent to Rs 369.75 compared to the previous day’s close of Rs 351.35.
The firm’s market capitalisation also increased to Rs 47,503 crore on the Bombay Stock Exchange (BSE). A total of 4.29 lakh shares of the firm worth Rs 15.59 crore were traded on the BSE.
Stock of another FMCG firm Patanjali Foods, engaged in the selling of cooking oil surged 5.55 per cent to Rs 1628 on BSE. The market cap of the firm climbed to Rs 58,139 crore. Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 6.66 crore on BSE.
Kriti Nutrients, sellers of soybean oil, saw its shares rise by 7.42 per cent to reach Rs 91.24 on BSE. As a result, the market cap of the company rose to Rs 58,139 crore. On BSE, a total of 0.26 lakh shares of the company were traded, resulting in a turnover of Rs 23.49 lakh.
Meanwhile, shares of Shri Gang Industries and Allied Products, a seller of vegetable oil, rose by up to 4.97 per cent to reach Rs 126.70 on BSE. This caused the market cap of the company to climb to Rs 213.37 crore. A total of 0.20 lakh shares of the company were traded on BSE, amounting to a turnover of Rs 23.76 lakh.
On 30 December 2022, the Indian government issued an order stating that the lower import duty structure on crude sunflower oil, crude palm oil and crude soy oil was scheduled to expire in March 2024.
In June 2023, the government had reduced the basic import duty on edible oils to ensure they are available to consumers at affordable prices.
The basic import duty on refined sunflower oil and refined soyabean oil was cut from 17.5 per cent to 12.5 per cent. With the new order, the lower import duty structure on crude palm oil, crude sunflower oil, and crude soy oil has been extended for another year.
This reduction in import duty on refined soyabean oil and refined sunflower oil will benefit consumers by easing domestic retail prices, according to the Consumer Affairs, Food, and Public Distribution Ministry.
