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India raises import tax on palm oil to highest in 10 yrs to support farmers

The fourth increase in import tax in less than six months would push up domestic edible oil prices and support prices of local oilseeds like soybean and rapeseed

Reuters  |  MUMBAI 

Edible Oil

has raised import tax on crude and to the highest level in more than a decade, the government said in a statement on Thursday, as the world's biggest importer tried to support local farmers.

The duty increase would lift oilseed prices and encourage domestic supply for crushing, helping cap edible imports in the 2017/18 marketing year that started on Nov. 1, dealers said.

raised import tax on to 44 percent from 30 percent and lifted the tax on to 54 percent from 40 percent, a government order said.

relies on imports for 70 percent of its edible consumption, up from 44 percent in 2001/02.

The fourth increase in import tax in less than six months would push up domestic edible prices and support prices of local oilseeds like soybean and rapeseed , said B.V. Mehta, of the Solvent Extractors' Association (SEA), a Mumbai-based trade body.

"Supplies from the new season rapeseed crop have just started. Now farmers will get remunerative prices due to the duty hike," Mehta said.

primarily imports palm from and and soyoil from and It also buys small volumes of from and canola from

The duty hike would narrow the difference between palm and soft oils like soyoil and sunflower oil, making it lucrative for refiners to increase purchases of soyoil and in coming months, said a Mumbai-based with a global trading firm.

"Palm oil's share is likely to fall substantially unless raises import tax on soyoil and sunflower oil," the said.

On Thursday, landed cost of crude soyoil at port was $812 per tonne, compared to $695 for crude palm oil, according to data compiled by trade body SEA.

 

(Only the headline and 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: Fri, March 02 2018. 06:55 IST
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