India Considers Raising Vegetable Oil Import Taxes

India is contemplating an increase in import taxes on vegetable oils to support farmers facing declining oilseed prices, with an announcement expected soon. The government aims to protect domestic farmers and ensure they receive at least the minimum support prices for their crops, which have seen a significant fall. Currently, the import duty on crude vegetable oils stands at 5.5%, following its abolition in 2022 to manage prices. The proposal is being driven by the Agriculture Ministry, while the final decision rests with the Department of Revenue under the finance ministry. Industry experts have voiced concerns over the current zero import duty on crude edible oil, arguing that it disincentivizes local oilseed production. With the rabi sowing season approaching, the government is under pressure to act swiftly to bolster domestic oilseed cultivation.