MUMBAI: India has raised the basic import tax on crude and refined edible oils by 20 percentage points.
The world’s biggest edible oil importer is trying to help protect farmers reeling from lower oilseed prices
The move could lift edible oil prices and dampen demand and subsequently reduce overseas purchases of palm oil, soyoil and sunflower oil.
After the duty hike announcement, Chicago Board of Trade soyoil extended losses and fell more than 2%.
New Delhi last Friday imposed a 20% basic customs duty on crude palm oil, crude soyoil and crude sunflower oil from Sept 14, the notification said.
It will effectively increase the total import duty on the three oils to 27.5% from 5.5% as they are also subject to India’s Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
Imports of refined palm oil, refined soyoil and refined sunflower oil will attract 35.75% import duty against the earlier duty of 13.75%. — Reuters
