Trade and markets
 

Detail

Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
All vegetable oils
Date
01/12/2014
Policy Category
Trade
Policy Instrument
Import policy
Description
Raised import tariff for both crude and refined edible oils, with a view to protect local refiners as well as farmers from price drops caused by rising imports.
Notes
Acknowledging that rising vegetable oil imports have led to a significant drop in local prices and hurt the refining industry as well as farmers, the government decided to raise by 5 percent India’s import tariff for both crude and refined edible oils. The decision by Indonesia and Malaysia (towards the end of last year) to suspend their palm oil export duties, together with falling international prices, led to a surge in India’s imports, in particular of palm oil products. India’s new import tariffs – fixed at 7.5% and 15% respectively for crude and refined oils – have come into effect on December 25th 2014. The industry had asked for stronger duty increases, especially for refined oils, with a view to enhance the competitiveness of the domestic refining sector.