India's government on Thursday raised import tax on crude and refined soyaoil, sunflower oil and canola oil to the highest level in more than a decade, as the world's biggest edible oil importer tried to support local farmers. The hike will make palm oil competitive in the Indian market and reduce the flow of soft oils like sunflower and canola in coming months, boosting local producers.
India relies on imports for 70 percent of its edible oil consumption, up from 44 percent in 2001/02. India raised import tax on crude soyaoil to 35 percent from 30 percent, and on crude canola oil and sunflower oil to 35 percent from 25 percent.
Import duty on refined soyaoil, canola oil and sunflower oil was raised to 45 percent from 35 percent. "Imports of palm oil will rise in coming months. Palm was losing market share due to higher duty. Now there is a level playing field," said Sandeep Bajoria, chief executive of the Sunvin Group, a Mumbai-based vegetable oil importer.
In March, India raised its import tax on crude palm oil to 44 percent from 30 percent and lifted the tax on refined palm oil to 54 percent from 40 percent. It kept the duty on soft oils unchanged, however, making them more competitive in the local market.
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