India raises import tax on edible oils to highest in a decade – Reuters

According to Reuters, India has raised import tax on edible oil to the highest level in more than a decade, the government said in an order, as the world's biggest importer of edible oils tries to support its farmers. The duty increase will lift oilseed prices and their availability for crushing in the domestic market, helping the country in capping edible oil imports 2017/18 (Nov-Oct). India doubled the import tax on crude palm oil to 30%, while the duty on refined palm oil has been raised to 40% from 25% earlier. The import tax on crude soyoil was increased to 30% from 17.5%, while on refined soyoil it was raised to 35% from 20%. Reuters exclusively reported about a government duty increase proposal this month. Indian oilseed crushers were struggling to compete with cheap imports from Indonesia, Malaysia, Brazil and Argentina, reducing demand for local rapeseed and soybeans, even after steep fall in oilseed prices. The second increase in import tax in less than 3 months will push up domestic edible oil prices and support prices of local oilseeds like soybean and rapeseed, said B the Solvent Extractors' Association (SEA). Soyabean and rapeseed prices have been trading below the government-set price level in physical market, angering farmers. India relies on imports for 70% of its edible oil consumption, up from 44% in 2001/02. Even after the duty increase, India will need to import about 15.5 MMT of edible oils in 2017/18, down from earlier estimate of 15.9 MMT, but higher than last year's 15 MMT, said Sunvin group, adding that "The duty hike will have marginal impact on imports. India has to import due to huge demand".

Import duties:
CPO from 15 to 30%
RPO from 25 to 40%
Crude soyoil from 17.5 to 30%
Ref SBO from 20 to 35%
Crude sun from 12.5 to 25%
Ref sunoil from 20 to 35%
Crude rapeseed oil from 12.5 to 25%
Ref rapeseed oil from 20 to 35%
Soybeans from 30 to 45%

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