ALSO READEdible oil import to rise in coming year Centre doubles import duty on crude edible oil Did inside info help big refiner mint money ahead of edible oil duty hike? Edible oil refinery capacity rises on import duty hike India's edible oil output to hit all-time high of 7.7 mn tonnes in 2017-18
India has raised import tax on crude and refined palm oil to the highest level in more than a decade, the government said in a statement on Thursday, as the world's biggest edible oil importer tried to support local farmers.
The duty increase would lift oilseed prices and encourage domestic supply for crushing, helping cap edible oil imports in the 2017/18 marketing year that started on Nov. 1, dealers said.
The fourth increase in import tax in less than six months would push up domestic edible oil prices
"Supplies from the new season rapeseed crop have just started. Now farmers will get remunerative prices due to the duty hike," Mehta said.
The duty hike would narrow the difference between palm oil and soft oils like soyoil and sunflower oil, making it lucrative for refiners to increase purchases of soyoil and sunflower oil in coming months, said a Mumbai-based dealer with a global trading firm.
On Thursday, landed cost of crude soyoil at Mumbai port was $812 per tonne, compared to $695 for crude palm oil, according to data compiled by trade body SEA.
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