India Increases Import Taxes On Edible Oil By 20%; A Policy To Support Farmers 

More than 70 per cent of India’s edible oil needs are met through imports. Amid farmers reeling under lower oilseed prices, the government has raised the basic import tax on crude and edible oil by 20 per cent to support them. Read on to know what you can expect from India’s increase in import tax on edible oil.

India’s Import Tax On Edible Oil Hiked To 20%

As per a report by Hindustan Times, India imposed a 20 per cent basic customs duty on crude sunflower oil, crude soy oil and crude palm oil from September 14. This in turn will lead to a rise in import duty on the three oils from 5.5 per cent to 27.5 per cent. This is because they are subject to India’s Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.

When it comes to refined palm oil, refined sunflower oil and refined soy oil or soybean oil, they will attract a 35.75 per cent import duty as compared to the previous 13.75 per cent. After all, the world’s biggest edible oil importer, India, has a telos to help farmers suffering from lower oilseed prices. The move to lift imports of edible oil will over time reduce demand and will also reduce overseas purchases of soyoil, sunflower oil and palm oil.

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The World’s Largest Importer Of Cooking Oil

Sandeep Bajoria, CEO of Sunvin Group stated to Hindustan Times that it is an attempt by the government to balance the interest of both farmers and consumers. Moreover, farmers are likely to receive a minimum support price set by the government on their rapeseed and soybean harvest.

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A dealer from New Delhi predicts that this move could hurt palm oil prices. The Indian edible oil imports consist of 50 per cent palm oil. India imports palm oil from countries like Malaysia, Thailand and Indonesia. For sunflower oil and soyoil, India buys it from Argentina, Russia, Ukraine and Brazil. While India’s edible oil market faces pressure, the government’s policy changes could help stabilise prices for both consumers and farmers.

Cover Image Courtesy: Canva Pro