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India allows duty-free imports of crude soybean oil and crude sunflower oil

India has allowed duty-free imports of 2 million tonnes each of crude soybean oil and crude sunflower oil for the current and next fiscal year until March 2024, an order announced on Tuesday. government, as part of efforts to limit local prices. .

Trade and government officials earlier said India may cut an import tax on crude soybean oil and crude sunflower oil as the world’s biggest importer of vegetable oil tries to control food inflation.

Traders must request their import quota from the government.

India, the world’s largest importer of edible oils, had already abolished the basic import tax on crude palm oil, crude soybean oil and crude sunflower oil, but maintained a 5% tax known as the Agriculture Infrastructure and Development Cess (AIDC) on these three categories of edible oils.

The industry body, the Solvent Extractors Association of India, had asked the government to also consider reducing or abolishing the 5% AIDC on crude palm oil.

The government has struggled to contain a rise in local edible oil prices in recent months, and Russia’s invasion of Ukraine has made it even harder for the government to rein in vegetable oil prices.
India imports more than two-thirds of its edible oil needs and a sharp drop in sunflower supplies from the Black Sea region has further inflated local prices.

The Black Sea accounts for around 60% of global sunflower oil production and 76% of exports, while Argentina, Brazil and the United States are India’s main suppliers of soybean oil.

India has tried to increase soybean oil imports even as palm oil shipments have fallen due to the main exporter – Indonesia’s decision to cut overseas sales.

“India’s soybean oil imports will increase in the coming months, but solar oil imports are unlikely to increase as Russia and Argentina have limited stocks,” a dealer based in India said. in Mumbai with a global trading company.

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