India is considering raising import taxes on edible oils as the country seeks to become self-reliant by boosting local oilseed production with the help of tax revenues. The government is also planning to increase some tax on edible oils. According to reports a 5 percent hike in duty is on the cards, however a statement is yet to be released on the same. This step will be discouraging vegetable imports by the country. Edible oils imports of palm oil/sunflower oil and soya oil will be therefore reduced in longer run following import duty hike.
India currently levies 37.5% and 45% import tax respectively on crude and refined palm oil. Imports of crude soybean oil, crude sunflower oil and rapeseed oil attract 35% import duty. India spends around $10 billion every year on edible oil imports as the country’s reliance on overseas purchases have jumped to 70% from 44% in 2001/02. The latest move is a part of Prime Minister Narendra Modi’s push toward reducing India’s dependence on imports and raising cash to support local production. India annually imports around 15 million tonnes of edible oils, including more than 9 million tonnes of palm oil and about 2.5 million tonnes each of soyoil and sunflower oil.