India has sharply increased duties on crude and refined vegetable oils in a bid to reduce imports and protect local oilseed farmers.
Import duties on crude palm oil (CPO), sunflower oil (SFO) and soybean oil (SBO) will increase to 27.5pc, from 5.5pc, while duties on refined oils, like RBD palm olein, are now set at 37.75pc, compared with 13.75pc earlier. The new rates came into effect on 14 September.
The move might reduce overseas imports of CPO, SBO and SFO, and support local oilseed prices, before regional elections.
On Monday, SFO was offered to India at about $1,060/t for October-November shipment, compared with $1,045-1,050/t a week ago.
The higher import duties could pressure palm oil prices. Palm oil imports represent the biggest share in India's overall vegetable oils purchases at 7.64mn t so far this season, down from 9.79mn t a year earlier.
India — the world's largest vegetable oil importer — received 13.69mn t of vegoils in November 2023-August 2024, the first 10 months of the vegetable oil year. SBO imports in August reached 455,000t, the highest since the start of the 2023-24 marketing year in November.
