On the import of crude and refined vegetable oils, Indian Government has increased the levy. On late Friday night as an order on a government website, this information was displayed. The cheap supplies coming in from Malaysia and Indonesia, so to protect the oil seed producers; it is the move to increase the import taxes as India is the largest buyer of vegetable oils.
The import duty on the crude palm oils has nearly doubled making it 15% and also on the refined palm oils increased the import duty made it 25 % by the center. There is nearly 10 percent differential in the duty after this hike and is aimed to protect the oil seed farmers. To boost local growing and processing of the oil seeds, this move will encourage as well.
The govt has also improved the required taxation on transfer of raw soy oil by 5% points that are from 12.5% it becomes 17.5%.
This move has been supported by the oil seed growing and crushing industry as the price pressure due to cheap imports, low domestic prices, and large inventories, it will protect them.
The third biggest commodity of import by India is Vegetable oils preceded by crude and gold only.
Nearly $10 billion annually, the country is spending for the transfer of palm oil from Malaysia and Philippines and lesser quantities of soy oil from Brazil and Argentina.
Farmers are bearing the brunt due to larger stocks and reduced prices of oil stock. Asking the government for help, Maharashtra and Madhya Pradesh farmers have been protesting. By this move, the farmers will definitely get the benefit of growing oil seeds.