India Poised for Second Import Tax Hike on Vegetable Oils

India plans to increase import taxes on vegetable oils to aid struggling oilseed farmers affected by declining domestic prices. The tax hike aims to boost local oil prices but may reduce demand and imports of palm, soyoil, and sunflower oil. The decision considers food inflation impacts.

India is set to raise import taxes on vegetable oils for the second time within six months, aiming to support oilseed farmers hit by falling domestic prices, according to government sources.

As the world's largest importer of edible oils, a hike could uplift local oil prices but curb demand and imports. Inter-ministerial discussions on the duty hike have concluded, with an official announcement expected soon.

In September 2024, import duties were increased significantly, yet soybean prices remain under state support levels. The government will consider the move's impact on food inflation as decisions finalize.