India Considers Import Duty Hike on Edible Oils Amidst Price Slump

India plans to increase import taxes on vegetable oils to support local oilseed farmers facing low prices. This measure, the second in six months, aims to raise domestic prices but may decrease overseas purchases. The government is expected to finalize the duty hike soon, considering inflation impacts.

India is set to increase import taxes on vegetable oils for the second time in six months, aiming to aid oilseed farmers grappling with plummeting domestic prices, according to government sources. The anticipated hike could elevate local prices while potentially reducing overseas imports of palm, soyoil, and sunflower oil.

After completing inter-ministerial consultations, authorities indicated that the government is now poised to finalize the import duty increase. The decision will need to balance the potential impact on food inflation, as highlighted by another government insider.

In September 2024, India implemented a 20% duty on crude and refined vegetable oils, raising import duties significantly. This adjustment reflects ongoing efforts to support domestic farmers, though it remains uncertain how much of an increase will now be applied.