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BUSINESS • 14/09/2024 12:29 PM

India Hikes Import Tax On Palm Oil, Other Edible Oils By 20 Pct

By Shakir Husain

NEW DELHI, Sept 14 (Bernama) -- India has hiked import tax on palm oil and other edible oils by 20 per cent, a move seen as helping local oilseed farmers.

The tax increase is effective from Sept 14, according to a government notification on Friday.

Basic customs duty on crude palm oil, soybean oil and sunflower oil has been increased from zero to 20 per cent and from 12.5 to 32.5 per cent for refined products.

Together with India's agriculture infrastructure and development cess and social welfare surcharge, the effective rate of import duty on crude oils will go up from 5.5 to 27.5 per cent, and from 13.75 to 35.75 per cent for refined oils.

An Indian trade group had sought an import duty hike on edible oils to support "remunerative price" for local oilseed farmers.

Facing pressure from farmers in the soybean-producing states of Maharashtra, Karnataka and Madhya Pradesh, the federal government earlier approved soybean procurement at the state-fixed minimum support price (MSP) of 4,892 rupees (US$58.3) per quintal (100 kg). The wholesale prices of soybean had fallen between 3,200 and 3,700 rupees in August, according to reports.

India is the world's top importer and second largest consumer of edible oils.

In its fiscal year 2022-23 (April-March), India imported 16.5 million tonnes of edible oils, with domestic production providing only 40-45 per cent of the country's total requirements.Its consumption of oils and fats was about 27.2 million tonnes in 2023 and the share of palm oil in it was 36 per cent.

India imported 2.83 million tonnes of palm oil from Malaysia in 2023, accounting for 18 per cent of total Malaysian palm oil exports. Its other palm oil suppliers are Indonesia and Thailand.

India imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

India's palm oil imports from Malaysia in August totalled 321,952 tonnes, including 305,122 tonnes of crude palm oil (CPO) and 14,800 tonnes of RBD palmolein, according to industry data.

Palm oil's share in the country's total vegetable oil imports of 1.53 million tonnes last month was 52 per cent.

-- BERNAMA

 

 

 

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