Source: Oleoscope (Russia)
The Indian government has increased tariffs on crude palm oil and refined sunflower oil to 20% and 32.5% respectively. According to the government, the measures are aimed at supporting soybean and oilseed farmers. The changes are expected to increase government revenue and boost farmers’ income, the Times of India reported.
According to a finance ministry release, the basic customs duty on crude palm oil, soybean oil and sunflower oil has been raised from 0 to 20 percent. The basic customs duty on refined palm oil, soybean oil and sunflower oil has been increased from 12.5 to 32.5 percent. The effective duty on oils will be raised from 5.5% to 27.5% and from 13.75% to 35.75% respectively.
“This is a significant support for soybean and oilseed farmers. Farmers from Maharashtra and Madhya Pradesh will benefit to a great extent as they have a significant share in the production of these oilseeds,” a state government official commented on the decision. The official added that these measures have been made possible by the effective containment of domestic edible oil prices, which have been declining steadily for almost two years now.
Apart from Madhya Pradesh and Maharashtra, other major oilseed producing states are Gujarat, Rajasthan, Karnataka, Andhra Pradesh, Uttar Pradesh, Telangana and Tamil Nadu.
The news agency Reuters had previously reported, citing its own sources, that India was planning to levy duties on imports of vegetable oils. The country imports more than 70% of its vegetable oil requirements and mainly sources palm oil from Indonesia, Malaysia and Thailand as well as soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine. India is striving to reduce its high dependence on edible oil imports. The government has stated that it wants to increase oilseed yields, expand acreage and introduce a dynamic import duty structure so that domestic prices are not affected by cheaper imports.
