Detail

India

Oilseeds, oils and meals

Edible oils, soybean

01/11/2017

Trade

Import policy

Raised the country\'s import tariffs for edible oils and soybeans, in an effort to curb edible oil imports and lift domestic prices in support of local farmers and refiners.

In an effort to curb edible oil imports and lift domestic prices in support of local farmers and refiners, the Government raised import tariffs for vegetable oils and soybeans to the highest level in more than a decade. Considering that India is the world’s top importer of vegetable oils, the tariff hike could affect world markets. The duty increases for crude and refined palm, soy, sunflower and rapeseed oil ranged between 60 and 100 percent. Indian producers had been calling for increased import restrictions for several months. With local crushers and refiners facing growing competition from low-priced imports, domestic oilseed prices had dropped below minimum support price levels – notwithstanding a first, modest increase in import duties earlier this year (see MPPU Sep.’17). The latest duty hike is expected to i) drive up domestic edible oil prices, thus stimulating local oilseed crushing, and ii) support local oilcrop prices, promoting farmer selling. With regard to trade, experts expect a relatively short-lived drop in vegetable oil imports, given India’s steady demand expansion. On the other hand, the price competitiveness of Indian oilmeals could improve, encouraging export sales.