GST to Boost Competitiveness of Indian Edible Oils in Domestic and Global Markets: SEA

Government has addressed a long-standing demand of the industry by simplifying the GST structure, says association president Sanjeev Asthana

The Indian edible oil industry has received a significant boost with the government’s latest move to revise GST rates—a reform that promises to benefit not just manufacturers, but also consumers and exporters. According to the Solvent Extractors’ Association of India (SEA), the rationalization of GST will strengthen the competitiveness of Indian edible oils and meals in both domestic and international markets.

In his monthly letter to SEA members, Sanjeev Asthana, President of SEA, hailed the decision as a long-awaited demand of the industry. The revision simplifies the GST structure and includes a notable reduction to 5% on key byproducts of vegetable oils and oilseeds. This, he emphasized, will ease the working capital burden on companies and streamline trade practices across the sector.

“This forward-looking step will ease working capital pressure, improve affordability for consumers, boost consumption, and enhance the competitiveness of Indian edible oils and meals in both domestic and international markets,” Asthana stated.

The edible oil sector has been grappling with high costs and tight margins due to fluctuating global prices and supply chain disruptions. The GST rationalization comes at a crucial time, aligning taxation with the realities of the market while offering much-needed relief to stakeholders.

Industry experts believe that lower GST rates on byproducts will not only encourage efficient utilization of oilseeds but also make Indian exports more attractive in competitive global markets. With improved affordability, domestic consumption is also expected to pick up, creating a win-win scenario for producers and consumers alike.

As India continues its journey toward becoming a major player in the global edible oil and oil meal trade, policy measures like these are seen as instrumental in building long-term sustainability and growth for the sector.