AreaIndia
Commodity GroupOilseeds, oils and meals
CommodityPalm oil
Date01/11/2020
Policy CategoryTrade
Policy InstrumentImport policies (tariff measures)
DescriptionConcerned about rising food price inflation, lowered the countrys import tariff on crude palm oil, while leaving the import duties for competing vegetable oils unchanged.
NotesINDIA 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 didnt 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.
