India imposes additional import tariffs on crude palm oil, which will cut imports from the country
According to foreign news on February 1, Indian Finance Minister Nirmala Sitharaman said on Monday,India imposes additional tariffs on crude palm oil imports. The world's largest vegetable oil importer is trying to build domestic agricultural infrastructure by imposing taxes on imports.
Sitaraman stated in his federal budget speech that India will lower the basic import tariff on crude palm oil from 27.5% to 15%, but will impose an additional tax on imports by 17.5%.
Sitalaman said the tax will provide resources for "the urgent need to improve agricultural infrastructure."
B.V. Mehta, president of the Mumbai-based Solvent Extractors' Association (Solvent Extractors' Association), said that after the adjustment, the actual import tax rate for crude palm oil will be 35.75%, compared to 30.25% before.
Mehta said: "With today's tariff hike, palm oil has lost its huge advantage over soybean oil and sunflower oil. This will help curb palm oil imports.
Sitaraman said that India also imposed an additional 20% tariff on imports of soybeans and soybean oil, but reduced the basic tariffs on the two commodities from 35% to 15%, and the final import tariffs remained unchanged.
India's palm oil imports have been increasing since December 2020, as the country lowered its import tariff to 27.5% at the end of November.
India imports palm oil from Indonesia and Malaysia, while other fats and oils including soybean oil and sunflower oil are purchased from Argentina, Brazil, Ukraine and Russia.
Sudhakar Desai, president of the Indian Vegetable Oil Producers' Association, said that the import tax rate for palm oil was 8.25% lower than that of sunflower oil and soybean oil.He added: "The current tax differential has shrunk to only 2.75%."
A broker of a global trading company based in Mumbai said that refiners have purchased palm oil shipped in February, but they may reduce imports in March.
Sitaraman stated in his federal budget speech that India will lower the basic import tariff on crude palm oil from 27.5% to 15%, but will impose an additional tax on imports by 17.5%.
Sitalaman said the tax will provide resources for "the urgent need to improve agricultural infrastructure."
B.V. Mehta, president of the Mumbai-based Solvent Extractors' Association (Solvent Extractors' Association), said that after the adjustment, the actual import tax rate for crude palm oil will be 35.75%, compared to 30.25% before.
Mehta said: "With today's tariff hike, palm oil has lost its huge advantage over soybean oil and sunflower oil. This will help curb palm oil imports.
Sitaraman said that India also imposed an additional 20% tariff on imports of soybeans and soybean oil, but reduced the basic tariffs on the two commodities from 35% to 15%, and the final import tariffs remained unchanged.
India's palm oil imports have been increasing since December 2020, as the country lowered its import tariff to 27.5% at the end of November.
India imports palm oil from Indonesia and Malaysia, while other fats and oils including soybean oil and sunflower oil are purchased from Argentina, Brazil, Ukraine and Russia.
Sudhakar Desai, president of the Indian Vegetable Oil Producers' Association, said that the import tax rate for palm oil was 8.25% lower than that of sunflower oil and soybean oil.He added: "The current tax differential has shrunk to only 2.75%."
A broker of a global trading company based in Mumbai said that refiners have purchased palm oil shipped in February, but they may reduce imports in March.
