InfoSAWIT, MUMBAI - India officially increased the basic import duty of crude and processed vegetable oils up to 20 point – percentage. This would be about to support and encourage local smallholders for facing the cheaper seed oils. The new policy would also increase the crude palm oil (CPO), soyoil, and sunflower oi import duty to be 27,5%, from the previous, 5,5%. For the processed oil, the import duty would also get increased to be 35,75%, from the previous 13,75%.

It is predicted this would encourage the vegetable oil price in the country, reduce the demands and dependence on imports namely from Indonesia, Malaysia, Brazil, dan Argentina.

The policy would be available since on 14 September to stabilize seed oil markets locally because the decreasing price. The increasing import duty should also escalate the vegetable oil price in the country that eventually minimize CPO, soyoil, and sunflower oil imports.

India purchased and got more than 70% of its vegetable oil needs through imports, namely from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil would be from Argentina, Brazil, Russia, and Ukraine.

As InfoSAWIT quoted from investing.com, Wednesday (18/9/2024), after the increasing import duty was announced, the markets reacted fast. Soyoil at Chicago Board of Trade got cheaper more than 2%. This meant the decreasing demand expectation from India as he biggest vegetable oil importer in the world.

The increasing import duty should also help escalate seed price locally, deliver more profits for the smallholders in India. It would also minimize its dependence on vegetable oil imports and would encourage the production, increase the competitiveness in the country. (T2)