India Likely to Raise Vegetable Oil Import Taxes to Aid Local Farmers: Report
India, one of the world’s largest vegetable oil importers, is considering raising import taxes on vegetable oils for the second time in less than six months to support local oilseed farmers. This move comes as a response to the ongoing struggles faced by farmers, who have been affected by the global market fluctuations and domestic supply chain issues.
According to a Reuters report, citing a government source, India is likely to impose a higher import duty on vegetable oils to help support the local farmers. This development comes just a few months after the country imposed a 20% customs duty on crude and refined vegetable oils in September 2024.
The import duty on vegetable oils, including crude palm oil, soybean oil, and sunflower oil, was revised upwards to 27.5% in September 2024. This move was aimed at protecting the domestic oilseed industry, which has been facing challenges due to the decline in oilseed production and increased competition from imports.
The Indian government has been taking steps to support the local oilseed farmers, who have been struggling to maintain their market share in the face of cheap imports. The country’s oilseed sector has been facing a crisis due to the decline in production, which has led to a significant increase in imports.
In 2023-24, India’s oilseed production fell by 12% compared to the previous year, which led to a surge in imports. The country imported 12.2 million metric tons of vegetable oils in 2023-24, up 16% from the previous year. The increase in imports has put pressure on the domestic oilseed industry, leading to concerns about the impact on local farmers and the industry as a whole.
The proposed increase in import duty is expected to help protect the domestic oilseed industry by making imports more expensive. This, in turn, is expected to increase the competitiveness of local oilseed farmers and help them maintain their market share.
The decision to raise import duty is also expected to provide a boost to the local oilseed industry, which has been facing challenges due to the decline in production and increased competition from imports. The industry has been seeking government support to help it recover from the crisis.
The Indian government has been taking steps to support the local oilseed industry, including providing subsidies to farmers and increasing the minimum support price (MSP) for oilseeds. The government has also been working to improve the supply chain and logistics to help farmers get a better price for their produce.
The proposed increase in import duty is expected to be a welcome move for the local oilseed industry, which has been seeking government support to help it recover from the crisis. The industry has been facing challenges due to the decline in production and increased competition from imports, and the increase in import duty is expected to help it regain its competitiveness.
In conclusion, India is likely to raise import taxes on vegetable oils for the second time in less than six months to aid local farmers. This move is expected to help protect the domestic oilseed industry and provide a boost to local oilseed farmers. The Indian government has been taking steps to support the local oilseed industry, including providing subsidies to farmers and increasing the minimum support price for oilseeds.
