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Business Recorder
3 hours ago
- Business
- Business Recorder
India cuts import tax on crude edible oils to help reduce food prices
MUMBAI: India halved the basic import tax on crude edible oils to 10% on Friday, the government said, as the world's biggest vegetable oil importer tries to bring down food prices and help the local refining industry. The customs duty applies to crude palm oil, crude soyoil and crude sunflower oil. It will effectively bring down the total import duty on the three oils to 16.5% from earlier 27.5% as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge. 'This is a win-win situation for vegetable oil refiners as well as consumers, as local prices will go down due to the duty reduction,' said B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA). The government did not change the import duty on refined palm oil, refined soyoil or refined sunflower oil, which currently attract a 35.75% import tax. The import duty gap between refined and crude edible oils has risen to 19.25%, which will prompt importers to bring in crude edible oils instead of refined oils and boost the local refining industry, Mehta said. India meets more than 70% of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, said the cut in the basic duty would bring down edible oil prices and help revive retail demand, which has been subdued in recent months.
India Today
3 days ago
- Business
- India Today
India reduces import tax on crude edible oils by 10% to bring down food prices
India halved the basic import tax on crude edible oils to 10 per cent on Friday, the government said, as the world's biggest vegetable oil importer tries to bring down food prices and help the local refining customs duty applies to crude palm oil FCPOc3, crude soy oil BOc2 and crude sunflower will effectively bring down the total import duty on the three oils to 16.5 per cent from earlier 27.5 per cent as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare "This is a win-win situation for vegetable oil refiners as well as consumers, as local prices will go down due to the duty reduction," said B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA).The government did not change the import duty on refined palm oil, refined soyoil or refined sunflower oil, which currently attract a 35.75 per cent import import duty gap between refined and crude edible oils has risen to 19.25 per cent, which will prompt importers to bring in crude edible oils instead of refined oils and boost the local refining industry, Mehta meets more than 70 per cent of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, said the cut in the basic duty would bring down edible oil prices and help revive retail demand, which has been subdued in recent months.
Yahoo
08-04-2025
- Business
- Yahoo
China boosts Indian rapeseed meal purchases after tariff on Canadian imports
By Rajendra Jadhav MUMBAI (Reuters) - China has bought 52,000 tons of Indian rapeseed meal in the past three weeks - four times the amount Beijing imported from India in the whole of 2024 - after Chinese authorities imposed a 100% retaliatory tariff on Canadian imports, industry sources said. India's rapeseed meal exports will help China, the world's top consumer, replace imports from Canada while easing pressure on local rapeseed prices in India, which is sitting on large stockpiles of the widely used animal feed. "Chinese buyers started showing interest in Indian rapeseed meal in the last few weeks due to tariffs on Canadian supplies," said an official with a leading rapeseed meal exporter. China imposed a 100% retaliatory tariff on rapeseed meal and oil imports from Canada starting on March 20. China bought Indian rapeseed meal for prompt shipments at $220 to $235 per metric ton, on a cost and freight basis, said the sources, who declined to be named because they were not authorised to speak to media. India, the world's third-largest rapeseed producer, has struggled to export significant amounts of rapeseed meal to China because of higher prices. In 2024, China imported 2.02 million metric tons of rapeseed meal from Canada, 504,000 tons from the United Arab Emirates, and 135,000 tons from Russia, according to customs data. It bought only 13,100 tons from India. India exported more than 2 million tons of rapeseed meal, but China accounted for less than 1%. "Chinese demand is huge. If its current buying momentum continues in the next few months, it could emerge as one of the biggest buyers of Indian rapeseed meal," said one of the sources. South Korea, Bangladesh, Thailand, and Vietnam traditionally account for the bulk of India's rapeseed meal exports. "India can raise shipments from around 2 million tons to 2.5 million tons this year, given the surplus in India and shortage in the world market," said B.V. Mehta, executive director of the Solvent Extractors' Association (SEA). India's rapeseed meal stocks are expected to rise as new season supplies begin to pick up. Weak local demand has pushed Indian rapeseed meal prices to around $200 per ton on a free-on-board (FOB) basis, down from $248 in February and $278 a year ago, according to SEA data. Sign in to access your portfolio
Reuters
08-04-2025
- Business
- Reuters
China boosts Indian rapeseed meal purchases after tariff on Canadian imports
MUMBAI, April 8 (Reuters) - China has bought 52,000 tons of Indian rapeseed meal in the past three weeks - four times the amount Beijing imported from India in the whole of 2024 - after Chinese authorities imposed a 100% retaliatory tariff on Canadian imports, industry sources said. India's rapeseed meal exports will help China, the world's top consumer, replace imports from Canada while easing pressure on local rapeseed prices in India, which is sitting on large stockpiles of the widely used animal feed. "Chinese buyers started showing interest in Indian rapeseed meal in the last few weeks due to tariffs on Canadian supplies," said an official with a leading rapeseed meal exporter. China imposed a 100% retaliatory tariff on rapeseed meal and oil imports from Canada starting on March 20. China bought Indian rapeseed meal for prompt shipments at $220 to $235 per metric ton, on a cost and freight basis, said the sources, who declined to be named because they were not authorised to speak to media. India, the world's third-largest rapeseed producer, has struggled to export significant amounts of rapeseed meal to China because of higher prices. In 2024, China imported 2.02 million metric tons of rapeseed meal from Canada, 504,000 tons from the United Arab Emirates, and 135,000 tons from Russia, according to customs data. It bought only 13,100 tons from India. India exported more than 2 million tons of rapeseed meal, but China accounted for less than 1%. "Chinese demand is huge. If its current buying momentum continues in the next few months, it could emerge as one of the biggest buyers of Indian rapeseed meal," said one of the sources. South Korea, Bangladesh, Thailand, and Vietnam traditionally account for the bulk of India's rapeseed meal exports. "India can raise shipments from around 2 million tons to 2.5 million tons this year, given the surplus in India and shortage in the world market," said B.V. Mehta, executive director of the Solvent Extractors' Association (SEA). India's rapeseed meal stocks are expected to rise as new season supplies begin to pick up. Weak local demand has pushed Indian rapeseed meal prices to around $200 per ton on a free-on-board (FOB) basis, down from $248 in February and $278 a year ago, according to SEA data.
Zawya
21-02-2025
- Business
- Zawya
India likely to raise vegetable oil import taxes to help support local farmers
India is likely to raise import taxes on vegetable oils for the second time in less than six months to help support thousands of oilseed farmers reeling from a crash in domestic oilseed prices, two government sources said on Friday. The hike in import duties by the world's largest importer of edible oils could lift local vegetable oil and oilseed prices, while potentially dampening demand and reducing overseas purchases of palm oil, soyoil, and sunflower oil. "(The) Inter-ministerial consultations regarding duty hike are over," said a government source, who did not wish to be named as he was not authorised to talk to the media. "The government is soon expected to raise the duties." The government would take into account the impact of the decision on food inflation, said another government source who also did not wish to be identified, citing official rules. A government spokesperson did not immediately respond to a request from Reuters for comment. In September 2024, India imposed a 20% basic customs duty on crude and refined vegetable oils. After the revision, crude palm oil, crude soyoil, and crude sunflower oil attracted a 27.5% import duty, compared to 5.5% previously, while refined grades of the three oils now have a 35.75% import tax. Even after the duty hike, soybean prices are trading more than 10% below the state-set support price. Traders also expect winter-sown rapeseed prices to fall further once new-season supplies begin next month. Domestic soybean prices are around 4,300 rupees ($49.64) per 100 kg, lower than the state-fixed support price of 4,892 rupees. Due to lower oilseed prices, it makes sense to raise import duties on edible oils, said the first official, adding that the exact amount of the hike has not yet been decided. Oilseed farmers are under pressure, and they need support to maintain their interest in oilseed cultivation, said B.V. Mehta, executive director of the Solvent Extractors' Association of India. Reuters on Thursday reported that Indian refiners have cancelled orders for 100,000 metric tons of crude palm oil scheduled for delivery between March and June, partly due to the likely hike in import duties. India meets nearly two-thirds of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. ($1 = 86.62 rupees)
