The Soybean Processors Association of India (SOPA) has called on the government to raise import duties on edible oils by at least 10%, arguing that cheaper imports and depressed domestic prices have discouraged farmers from cultivating oilseeds.
In a representation to Agriculture Minister Shivraj Singh Chouhan, SOPA Chairman Davish Jain said the influx of low-cost imports has forced soybean farmers to cut back on sowing, with the cultivated area shrinking over 5% this year. Prices of soybeans have consistently remained below the minimum support price (MSP), even after government procurement operations.
“We earnestly request your kind intervention to revisit the customs duty structure on imported edible oils and increase the duty by at least 10% at the earliest,” Jain said. “Such a measure will restore farmers’ confidence, incentivise higher oilseed production, and strengthen India’s path to self-sufficiency.”
Earlier this year, the government reduced import duty on crude edible oils, including crude soybean oil, from 20% to 10% in a bid to control food inflation. However, SOPA noted that this policy shift has “inflicted serious damage on the oilseed economy,” forcing even procured stocks to be liquidated at a loss. The association warned that the government may have to step in again, with potential procurement costs exceeding ₹5,000 crore.
SOPA stressed that edible oils are currently not contributing to inflation, with soybean oil prices staying low, and argued for a balance between consumer affordability and farmer viability. “Consumers should be willing to pay a fair price to enable higher oilseed production and reduce import dependence,” the association added.