India Eyes Higher Import Taxes to Support Farmers Amid Low Oilseed Prices

India may increase import taxes on vegetable oils, including palm, soyoil, and sunflower oil, to support farmers facing low oilseed prices. The proposal, driven by the farm ministry, is under consideration by the Department of Revenue. A final decision is expected soon.

India is considering raising import taxes on vegetable oils to help protect farmers reeling from lower oilseed prices, according to two government sources.

This move, anticipated to be announced in the coming weeks, may dampen demand and reduce overseas purchases of palm oil, soyoil, and sunflower oil. "We are exploring all options to help farmers. Increasing import taxes is one of the options," said a government source who requested anonymity per official protocols.

The proposal has been advanced by the farm ministry, with the Department of Revenue under the finance ministry expected to make the final decision, said another government official who also declined to be named. Notably, India, the world's largest vegetable oil importer, abolished basic import taxes on crude vegetable oils in 2022 to cool prices but still imposes a 5.5% Agriculture Infrastructure and Development Cess.

A government spokesman did not immediately respond to a request for comment.

(With inputs from agencies.)