New Delhi, June 4 -- More than eight months after imposing a 20% basic customs duty on crude soybean, palm and sunflower oil, the government has reduced this duty by 10%. What is the move aimed at and what will be the impact on fast moving consumer goods (FMCG) companies?

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That's when the government increased the basic customs duty on various edible oils (crude and refined) to protect domestic producers from cheap imports and encourage local cultivation of crops. Effective 14 September, the basic customs duty on crude soybean, palm and sunflower oil was raised from 0 to 20%, making the effective duty on crude oils as high as 27.5%. Similarly, the basic custom duty on refined...