India may further cut taxes on edible oils to cool prices

India is planning to cut taxes on some edible oils to cool the domestic market after the war in Ukraine and Indonesia’s ban on palm oil exports sent prices skyrocketing. India, the world’s top importer of vegetable oils, is looking to cut the agriculture infrastructure and development cess on crude palm oil imports from 5%. The new tax amount is still being worked out, it is believed. The agri infra cess is levied over and above basic tax rates on certain items, and is used to finance agriculture infrastructure projects. The base import duty on crude palm oil has already been scrapped. India is especially vulnerable to soaring vegetable oil prices as it relies on imports for 60% of its needs. Prices, which have been rallying for the past two years, extended the surge after Russia’s invasion of Ukraine locked out exports of sunflower oil and Indonesia, the biggest shipper of edible oils, imposed a ban on palm oil exports to protect its domestic market. India has tried to cool ...