World: India plans to raise import duties on vegetable oils

Published 2024년 9월 2일

Tridge summary

The Indian government is planning to increase the import duty on vegetable oils to safeguard local farmers from falling oil prices, which is likely to decrease the demand and supply of palm, soybean, and sunflower oil in the country. This decision comes amidst rising global oil prices, which have led to an increase in the prices of palm oil futures in Malaysia and soybean oil futures in Chicago. The proposed import duty hike is expected to impact the export rates of these oils from major producing countries like Malaysia and Ukraine, which have seen a reduction in exports in recent months due to various reasons. Ukraine, the largest European Union buyer of Ukrainian sunflower oil, purchased a record 3.7 million tons of it, making it the main buyer for the 2023/24 marketing year.

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Original content

The Reuters agency, citing its own sources, reported that the Indian government plans to increase the import duty on vegetable oils to protect its farmers from lower oil prices. Such a decision, which may be taken in the coming weeks, will lead to a reduction in the demand and supply of palm, soybean and sunflower oil to the country. Amid rising oil prices, October palm oil futures on Bursa Malaysia rose 2.4% for the week to RM3,920/t or $906.8/t (+6% for two weeks), despite falling export rates in August. According to surveyors Societe Generale de Surveillance (SGS), Intertek Testing Services and AmSpec Agri Malaysia, for August 1-25, Malaysia reduced palm oil exports by 14.1-14.9%. December soybean oil futures in Chicago rose 8.2% to $930/t on the week, fully reversing the monthly decline. The sharp increase in prices is due not only to the increase in the price of oil, but also to rumors about the US's intention to limit the import of used vegetable oil (UCO). According to ...

Source: Agroconf