India raises edible oil import tax by 20%, putting pressure on global market

Published Sep 27, 2024

Tridge summary

India will impose a 20% customs duty on crude palm oil, crude soybean oil, and crude sunflower oil from September 14, 2024, increasing the import duty from 5.5% to 27.5%. The duty on refined versions of these oils will rise from 13.75% to 35.75%. The move aims to balance consumer and farmer interests and may lead to farmers receiving the government-mandated minimum support price for soybean and canola harvests. The government is also considering measures to reduce India's reliance on edible oil imports, such as increasing oilseed production and expanding cultivation areas.

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

Original content

India will impose a 20% customs duty on crude palm oil, crude soybean oil and crude sunflower oil from September 14, 2024, according to a Finance Ministry notification. This will increase the import duty on these three oils from 5.5% to 27.5%, as they are also subject to India's agricultural infrastructure development tax and social welfare levy. Meanwhile, refined palm oil, refined soybean oil and refined sunflower oil will see import duty increased from 13.75% to 35.75%. Mr. Sandeep Bajoria, CEO of Sunvin Group, an edible oil brokerage, said the Indian government has tried to balance the interests of both consumers and farmers. According to him, the move has increased the chances of farmers receiving the government-mandated minimum support price for soybean and canola harvests. Farmers from Maharashtra and Madhya Pradesh will benefit a lot as they account for a significant portion of the oilseed production. Apart from Madhya Pradesh and Maharashtra, the other major oilseed ...

Source: Vinanet