India Poised to Hike Vegetable Oil Import Taxes, Boosting Domestic Farmers

India is set to increase import taxes on vegetable oils again, aiming to support local oilseed farmers struggling with plummeting domestic prices. The move, expected to be announced soon, could raise import duties on crude palm oil, soyoil, and sunflower oil from the current 27.5% to potentially higher levels. This decision follows a previous 20% hike in September 2024. The tax increase is likely to lift local vegetable oil and oilseed prices, potentially dampening demand for imports. Soybean prices, currently around ₹4,300 per 100 kg, remain below the government-set support price of ₹4,892, highlighting the need for intervention to protect farmer interests.

 

Sources: Economic Times, Business Standard, Bajaj Broking