India eyes lower import taxes on cooking oils
AgenciesIndia, the world’s biggest vegetable oils importer, is considering lowering import taxes on the commodities to try to curb food inflation, two government and two industry s...
India, the world's largest importer of vegetable oils, is contemplating reducing import taxes on these commodities to combat food inflation, according to sources from government and industry. As peak demand festival season begins, prices of vegetable oils have surged by nearly 20% over the past year. Lowering these taxes would likely boost consumption, especially during the September to November festival period when households prepare sweets, snacks, and fried treats.
Internationally, increased demand from India could support Malaysian palm oil and US soyoil futures, analysts predict.
India fulfills nearly two-thirds of its vegetable oil requirements through imports, primarily palm oil, soyoil, and sunflower oil sourced from Malaysia, Indonesia, Argentina, Russia, and Ukraine. Price hikes have been attributed to disruptions resulting from Russia's war on Ukraine and extreme weather conditions linked to El Nino and global warming. One government source stated that the government aims to protect consumers while safeguarding farmers' interests.
Instead of implementing a substantial reduction in import duties, the government might lower the basic import duty by 5%, according to a senior industry official. This measure would maintain local soybean prices above government-set support levels and bolster oilseed farmers.
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