India increases import tariffs on soybean and sunflower oils, affecting Argentine exports

Published 2024년 9월 14일

Tridge summary

India has raised the import tariff on edible oils, including soybean, sunflower, and palm oils, from 7.5% to 27.5% to protect its farmers, which has led to a 2% drop in soybean oil prices on the Chicago Stock Exchange. This decision will significantly impact Argentina, which exports a large portion of its soybean and sunflower oils to India. The tariff hike aims to boost the competitiveness of Indian producers, despite the country's heavy reliance on imports from nations like Indonesia, Malaysia, Brazil, and Ukraine. The move is seen as a strategic balance between consumer and farmer interests, particularly with elections approaching in Maharashtra.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India increased the import tariff on edible oils (soybean, sunflower and palm) by 20 percentage points, setting them at 27.5% to protect its farmers, which will affect Argentina's exportable supply. After the announcement, the price of soybean oil fell by 2% on the Chicago Stock Exchange. According to data from the Rosario Stock Exchange (BCR), 48% of soybean exports and 30% of sunflower exports from Argentina are destined for India. In 2022, a year not affected by the drought, they exceeded US$3.5 billion. "It will impact the value of soybean oil and that will have an effect on the price of soybeans," sources from the oil industry explained to LA NACION. They recalled that India periodically modifies import tariffs "and raises them to protect its industry and its soybean producers." In the local oilseed industry, they explained that “India is not self-sufficient nor does it have a chance of achieving it” and that Argentina is “a strong supplier” with a very solid relationship ...

Source: Agromeat