Key Points
- India will keep the recent edible oil import duty hikes, even with global price increases.
- Global prices for soybean, sunflower, and palm oil have jumped by up to 16%.
- New import duties on crude palm and soybean oil are set at 20%.
- Retail prices for edible oils have risen by ₹10-13 per litre since last month.
- The Solvent Extractors Association advises members not to increase prices on older stock.
Looma News
The Indian government has chosen not to reverse the recent hikes in edible oil import duties, despite a spike in global prices. An official stated that consumers need to adjust to the market rates to help the country achieve self-sufficiency. The rise in global prices is linked to dry weather affecting soybean production in Brazil and Argentina.
As of October 23, the global prices of soybean oil went up by 16%, sunflower oil by 12%, and palm oil by 10% over the past month. On September 13, the government raised import duties on crude palm, soybean, and sunflower oils to 20%, up from a previous rate of zero. The duty on refined oils increased from 12.5% to 32.5%. After these changes, imported crude oils now face a duty of 27.5%, while refined oils have a duty of 35.75%, including cess.
According to data from the Consumer Affairs Ministry, the average retail prices of soybean oil rose to ₹137 per litre, sunflower oil to ₹142, and palm oil to ₹123, compared to last month’s prices of ₹127, ₹129, and ₹110, respectively. Mustard oil also increased, now selling at ₹164 per litre, up from ₹151.
The Solvent Extractors Association of India (SEA) has advised its members against raising prices on stock imported before the duty hike. SEA President Sanjeev Asthana noted that the association expected a drop in international export prices after the duty increase. However, the rising global prices due to supply shortages have led to higher import costs instead. The Food Ministry is concerned about the climbing prices, especially for stock acquired at lower duties, which reinforces SEA’s advice to keep retail prices stable at pre-September 14 levels.
