India has hit the market of vegetable oils, increasing import duty
India has raised the import duty on vegetable oils to the highest in a decade level. Thus, the government, which is the world's largest importer of vegetable oils, has decided to support its own farmers.
the Import duty on vegetable oils increased as follows:
refined palm oil from 25 to 40%
crude soybean oil – from 17.5 to 30%
crude sunflower and rapeseed oil – from 12.5 to 25%
refined soybean, sunflower and rapeseed oil – from 20% to 35%.
- crude palm oil from 15 to 30%
the Import duty on soybeans increased from 30 to 45%.
the Demand for rapeseed and soy local production for a long period of time falls through the import of cheap oils from Indonesia, Malaysia, Brazil and Argentina. To support the domestic market import duty increase for the second time in the last three months.
Today own demand for vegetable oils in India 70% covered by imports, whereas in season 2001/2002, this figure was only 44%. Last season, India imported 15 million tonnes of vegetable oils. Experts believe that after the increase of duties on import of vegetable oils in the season 2017/18 will decrease from 15.9 to 15.5 million tons.
this decision of the Indian government will lead to a significant decline in prices for vegetable oil, and so prices are falling under pressure from a seasonal increase in production.