PALMOILMAGAZINE, MUMBAI – India has officially raised the basic import duty on crude and processed vegetable oils by up to 20 percentage points. This move aims to support local smallholders against cheaper seed oils.
The new policy increases import duties on crude palm oil (CPO), soyoil, and sunflower oil to 27.5%, up from 5.5%, and on processed oils to 35.75%, up from 13.75%.
The policy, effective from September 14, 2024, is expected to boost domestic vegetable oil prices, reduce demand for imports, and lessen dependency on sources such as Indonesia, Malaysia, Brazil, and Argentina.
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ith India relying on imports for over 70% of its vegetable oil needs, including soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine, the new duties are anticipated to stabilize the local seed oil market and reduce import volumes.
As Palmoilmagazine.com quoted from investing.com, Wednesday (18/9/2024), after the increasing import duty was announced, the markets reacted fast. Soyoil at Chicago Board of Trade got cheaper more than 2%. This meant the decreasing demand expectation from India as he biggest vegetable oil importer in the world.
The increasing import duty should also help escalate seed price locally, deliver more profits for the smallholders in India. It would also minimize its dependence on vegetable oil imports and would encourage the production, increase the competitiveness in the country. (P2)
