India has approved a tax-free import of 2 million tons of crude oil of soyoil and crude sunflower oil this year and next financial year until March 2024, a government order said on Tuesday, as part of efforts to curb local prices.Trade and government officials have previously said that India could reduce tariffs on crude soybean oil and crude sunflower oil as major imports of vegetable oil from other countries try to lower food prices. Traders need to demand their foreign exchange share from the government.
Government to reduce vegetable oil prices
India, the world’s largest importer, has already abolished the import duty on crude palm oil, crude soyoil and crude oil, but continued the 5% tax known as the Agricultural Infrastructure and Development Cess (AIDC) on these three. edible fat levels.The Solvent Extractors’ Association of India had asked the government to consider cutting AIDC 5% off crude palm oil.New Delhi has been struggling to hold a meeting on local edible oil levels in recent months, and Russia’s attack on Ukraine has made it even more difficult for the government to reduce vegetable oil prices.
India imports more than two-thirds of its demand for edible oil and the sharp decline in sunflower supplies from the Black Sea region has pushed up local prices.The Black Sea accounts for about 60% of the world’s sunflower oil production and 76% for export, with Argentina, Brazil and the United States the largest suppliers of soyoil in India.India has been trying to increase soyoil imports as palm oil exports have slowed due to Indonesia’s decision by a leading supplier to curb exports.”India’ssoyoil sales will increase in the coming months, but sunoil sales are very unlikely to increase as Russia and Argentina have limited stocks,” said a Mumbai-based trader and global trading company.
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