The Indian government has called on edible oil producers to refrain from increasing retail prices, despite a recent hike in import duties. The Food Ministry emphasized that around 3 million tons of edible oil, imported at lower duties, is available and sufficient to last for 45–50 days. The duty hike is part of efforts to support domestic oilseed farmers as new crops are set to hit the market in October 2024.
The government has requested that edible oil processors maintain current retail prices following a recent increase in customs duties. Despite the hike, sufficient stocks of cooking oils, imported at previously lower duties, remain available for the next 45–50 days, according to the Food Ministry. The appeal was made after a meeting chaired by Food Secretary Sanjeev Chopra with industry representatives.
Effective from September 14, 2024, the basic customs duty on crude soybean oil, palm oil, and sunflower oil has been increased to 20%, with the effective duty on crude oils rising to 27.5%. For refined oils, the duty was raised from 12.5% to 32.5%, making the effective duty 35.75%.
The government’s move to hike duties is aimed at supporting domestic oilseed farmers ahead of the arrival of new soybean and groundnut crops in October. The decision follows discussions on global edible oil production, surpluses, and falling prices, which have put pressure on domestic markets.
India imports over 50% of its edible oil needs, primarily from Malaysia, Indonesia, Brazil, Argentina, Russia, and Ukraine.