India canceled duty-free imports of sunflower oil, which will reduce demand for it, and soybean oil immediately rose in price

Published 2023년 3월 2일

Tridge summary

The Indian government has decided to cancel the duty-free import of 2 million tons of unrefined sunflower oil and impose a 5.5% tax on it from April 1 to support local oilseed producers. This decision comes after a decrease in sunflower oil prices and a lack of expected increase in supplies. India, the world's largest buyer of vegetable oils, imports 60% of its annual consumption. The government is also expected to increase support for domestic farmers and potentially raise the import duty on palm olein.

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Original content

The Indian government has decided to cancel the duty-free import of 2 million tons of unrefined sunflower oil and impose a tax of 5.5% on it from April 1 to support local oilseed producers. The decision on the duty-free import of 2 million tons of sunflower oil was made in May 2022 as a result of a reduction in supplies from Ukraine and the Russian Federation and a sharp rise in world prices. It was planned that this quota would remain in effect in 2023/24 MY, however, sunflower oil prices unexpectedly fell to the level of palm oil prices, but the increase in supplies did not occur due to problems with exports from Ukraine. In January, India waived duty-free imports of unrefined soybean oil in the new fiscal year (from April 1), amid a new decision that will lead to increased imports of palm oil, for which duty-free import quotas were not introduced. India buys sunflower oil from Ukraine and the Russian Federation, soybean oil from Argentina, Brazil and the USA, and palm oil from ...

Source: Graintrade