Source: oleoscope (Russian)
The Indian government has increased tariffs on crude palm oil and refined sunflower oil to 20% and 32,5% respectively. According to the government, the measures are aimed at Soy- and oilseed farmers. The changes are expected to increase government revenue and boost farmers' income, the Times of India reported.
According to a statement from the Ministry of Finance, the basic customs duty on crude palm oil, soybean oil and sunflower oil has been raised from 0 to 20 percent. The basic customs duty on refined palm, soybean and sunflower oil has been raised from 12,5 to 32,5 percent. The effective customs duty on oils will be raised from 5,5% to 27,5% and from 13,75% to 35,75%, respectively.
"This is a significant support to the soya and oilseed farmers. Farmers from Maharashtra and Madhya Pradesh will benefit greatly as they have a significant share in the production of these oilseeds," a state government official said, commenting on the decision. The official added that these measures have been made possible by the effective containment of domestic edible oil prices, which have been falling continuously for nearly two years now.
Besides Madhya Pradesh and Maharashtra, other important oilseed producing states are Gujarat, Rajasthan, Karnataka, Andhra Pradesh, Uttar Pradesh, Telangana and Tamil Nadu.
Earlier, Reuters news agency, citing its own sources, reported that India plans to impose tariffs on imports of vegetable oils. The country imports more than 70% of its vegetable oil needs, mainly sourcing palm oil from Indonesia, Malaysia and Thailand, and soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine. India is seeking to reduce its high dependence on edible oil imports. The government said it wants to increase oilseed yields, expand the area under cultivation and introduce a dynamic import tariff structure so that domestic prices are not affected by cheaper imports.