India Expected to Hike Vegetable Oil Import Taxes Again

India is set to raise import taxes on vegetable oils for the second time in less than six months to support oilseed farmers facing declining domestic prices. The anticipated hike follows a previous increase in September 2024, which saw import duties rise significantly, yet soybean prices remain below the government-established support levels. Government sources indicate that inter-ministerial consultations have concluded, and an official announcement is expected soon, with considerations for potential impacts on food inflation. While the increase could elevate local prices, it may also dampen demand and reduce imports of palm oil, soyoil, and sunflower oil. Farmers are under pressure and require support to sustain their cultivation interests, as indicated by industry leaders. The exact amount of the new duty hike has not yet been finalized.