INSUBCONTINENT EXCLUSIVE:
Domestic soybean prices are around Rs 4,600 ($54.84) per 100 kg, lower than the state-fixed support price of Rs 4,892.2 min read Last
government said on Friday, as the world's biggest edible oil importer tries to help protect farmers reeling from lower oilseed prices
The
move could lift edible oil prices and dampen demand and subsequently reduce overseas purchases of palm oil, soyoil and sunflower oil.
After
per cent basic customs duty on crude palm oil, crude soyoil and crude sunflower oil from Sept
are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
Imports of refined palm oil,
refined soyoil and refined sunflower oil will attract 35.75 per cent import duty against the earlier duty of 13.75 per cent.
Reuters
reported in late August that India was considering an increase in import taxes on vegetable oils to help soybean growers ahead of regional
elections due in Maharashtra later this year.
"After a long time, the government has been attempting to balance the interests of both
consumers and farmers," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
The move has increased the likelihood of
farmers receiving the minimum support price set by the government for their soybean and rapeseed harvests, he said.
Domestic soybean prices
are around Rs 4,600 ($54.84) per 100 kg, lower than the state-fixed support price of Rs 4,892.
India meets more than 70 per cent of its
vegetable oil demand through imports
It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and
Ukraine.
"India's edible oil imports consist of more than 50 per cent palm oil, so it's obvious that the Indian duty hike is going to have
picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated
feed.)First Published: Sep 14 2024 | 4:55 PMIST
