Trade and markets
 

Detail

Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
Crude/refined soybean-, sunflower-, groundnut-, rapeseed-oil
Date
01/06/2018
Policy Category
Trade
Policy Instrument
Import policy
Description
Raised the import duties for vegetable oils other than palm oil by 5-10 percent, in a bid to stimulate domestic oilseed production and help curb edible oil imports.
Notes
In June, the Indian Government further raised the import duties for crude and refined soybean, sunflower, groundnut and rapeseed oil (see also MPPU Mar.’18). At 35 percent for refined grades and 45 percent for crude grades, the tariffs for the referenced oils now stand at the highest level in more than a decade – just as the country’s palm oil import tariff. The measure is aimed at curbing imports while protecting the interests of the country’s oilseed growers and processors. Unexpectedly, since the hike in duties, sharp increases in edible oils deliveries from Bangladesh and Sri Lanka have been reported, mainly involving shipments of palm oil originating in Indonesia and Malaysia. Apparently, traders have taken advantage of the South Asian Free Trade Agreement (SAFTA), which, by maintaining a duty-free zone in the region, allowed traders to circumvent India’s high import tariffs.