India could cut import tax on some edible oils to tame local prices


India imports palm oil mainly from Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia.(File pic shows a palm oil factory in Malaysia.)

India could soon cut an import tax on crude soyoil and crude sunflower oil, trade and government sources said on Tuesday, as the world's biggest vegetable oil importer tries to keep a lid on local prices.

The reduction in the duty, known as the Agriculture Infrastructure and Development Cess (AIDC), could bring down domestic prices and help consumers and domestic refiners cushion the blow from surging food costs.

The government could either cut or axe the 5% AIDC, said the sources who did not wish to be named as they are not authorised to talk to the media.

The government should also consider cutting the 5% AIDC on crude palm oil to help the local refining industry, said B.V. Mehta, executive director of the Solvent Extractors' Association of India.

India has already abolished the basic import tax on crude palm oil, crude soyoil and crude sunflower oil, but continues with the 5% AIDC on these three grades of edible oils.

New Delhi has been struggling to contain a rally in local edible oil rates in recent months, and Russia's invasion of Ukraine has made it even more difficult for the government to tame vegetable oil prices.

India imports more than two-thirds of its edible oil needs and a sharp drop in the supplies of sunflower from the Black Sea region has further stoked local prices.

After retail and wholesale inflation hit multi-year highs in April, the government of Prime Minister Narendra Modi on Saturday announced a series of changes to the tax structure levied on crucial commodities to insulate consumers from rising prices.

India imports palm oil mainly from Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia.

India's palm oil imports in June are unlikely to spike despite Indonesia's decision to lift its ban on overseas shipments.- Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Malaysia , palm oil , edible oils , India , import tax ,

   

Next In Business News

FGV appoints independent consultant to review director's remuneration
Malaysia palm oil millers halt production as CPO prices plummet
Credit Suisse found guilty in cocaine cash laundering case
S&P revises Malaysia's sovereign credit ratings’ outlook to stable, projects GDP to grow 6.1% in 2022
Sapura Energy returns to the black with RM91.9mil net profit in 1Q
Ringgit depreciates against US dollar
DNeX to explore business synergy with Saudi Arabia-based Abilitii
Pertama Digital exploring with banks to provide digital banking products
Mynews posts net loss of RM10.22mil in 2Q22
Southern Cable targeting higher exports in FY22

Others Also Read