Shares of consumer firms Adani Wilmar and Patanjali were gaining on Friday after reports that the government will continue to allow edible oil imports at lower tax rates.
What Happened: India has reportedly extended the allowance for the import of edible oils at reduced tax rates until March 2025, aiming to manage domestic prices effectively.
The government order, reviewed by Reuters on Friday, revealed the extension of the lower import duty structure on crude palm oil, crude sunflower oil and crude soya oil.
Initially slated to conclude in March 2024, refiners can now avail the lower duties for edible oil imports until March 2025, as per the revised order.
The lower tax rates for edible oils means that retailers like Adani Wilmar and Patanjali will enjoy fatter margins for longer.
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Price Action: Adani Wilmar’s share price climbed 4.41% to ₹366.80 while Patanjali’s share price shot up 4.36% to ₹1,613.00 around noon on Friday.
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