New Delhi, India- The government of India made a strong move as they absolved custom duty on yearly edible oil imports on May 25th, 2022. The exertion of this step will come into play on May 31st, 2022. With retail expansion reaching almost an eight-year high in the previous month, government officials took this step to bring down the burning rage of edible oil prices in the domestic market. Biodiesel production requires vegetable oil and other fatty acids. Thus, any oscillations in the market dynamics of these oils will directly reflect their impact on the Indian biodiesel market value.

The powerful obligation on crude palm oil, unrefined soybean oil, and sunflower until now was 5.50%, which will boil down to nearly zero after Tuesday's decrease for the two oils up to a fixed amount. This import relief has relaxed Biodiesel producers as their production costs are likely to decline slightly, proportionally impacting the final market value of Biodiesel. Positive outcomes are likely to be expected as the official statement is released after Indonesia withdrew the ban on the export of palm oil from the overseas market. India aims to achieve the E15 biofuel policy by 2025, and these legal actions will help boost the production of Biofuel to diminish India's dependency on imported fuel from major suppliers.

Experts believe that the relaxation in feedstock, palm oil, and sunflower oil prices will ease the market sentiments toward Biodiesel in a positive direction as manufacturers will have enough supply with them to produce Biodiesel. Furthermore, smooth trade transportation between the importers and suppliers owing to steady freight charges and the availability of vessels in major ports will stabilize the market for Biodiesel.

As per ChemAnalyst, "The prices of Biodiesel may exhibit buoyancy in upcoming weeks as the amendment of the new policy will take some time to showcase its outcome in the Indian market." Furthermore, the demand for Biofuel in India will remain on a positive edge, impacting Biodiesel prices in the Indian market.