Detail

India

Oilseeds, oils and meals

Palm oil

01/11/2020

Trade

Import policies (tariff measures)

Concerned about rising food price inflation, lowered the country’s import tariff on crude palm oil, while leaving the import duties for competing vegetable oils unchanged.

INDIA – import policy: Concerned about rising food price inflation, the Government lowered import duties on crude palm oil from 37.5 percent to 27.5 percent, effective 27 November 2020. Reportedly, local palm oil prices increased strongly on the back of surging world market prices. The tariff reduction is expected to favour imports of palm oil, which, due to the coronavirus crisis, experienced lower demand from the hospitality sector. Meanwhile, the import duty for competing vegetable oils has been left unchanged at 35 percent. Domestic prices for sunflower and soybean oil also recorded sharp rises, as demand for these oils – which are primarily consumed within households – increased in the wake of the COVID-19 epidemic. Market experts didn’t exclude upward corrections in the various edible oil import duties in the near future, in time to encourage domestic oilseed plantings in the forthcoming season.