PALMOILMAGAZINE, MUMBAI – The Government of India is considering increasing the import duty on vegetable oils to protect smallholders and farmers impacted by falling seed oil prices, according to two government sources on Wednesday. The decision, expected to be announced next month, aims to reduce demand and purchases of vegetable oils like crude palm oil, soybean oil, and sunflower oil from various countries.
“We are exploring all options to support smallholders. Raising the import tax is one measure under consideration,” an official said, as quoted by Palmoilmagazine.com from Reuters on Friday (30/8/2024).
Another official noted that the proposal originated from the Ministry of Agriculture and the Department of Revenue, which are overseen by the Ministry of Finance, and will be announced soon.
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In 2022, India as the biggest vegetable oil importer in the world, eliminated the basic import tax for crude oil to stabilize its price but New Delhi still managed tax about 5,5%, known as agricultural development and infrastructure customs.
A spoke-man of the government did not deliver responses about the plan.
If it runs, the increasing import tax would protect the smallholders in the country that faced seed oil price that being much cheaper, and would deliver impacts for vegetable oil globally because India would be the main vegetable oil consumer in the world. (P2)
