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Indian Government has increased the levy on the import of crude and refined vegetable oils. This information was displayed as an order on a government website on late Friday night. India is the largest buyer of vegetable oils and has proceeded with the move to increase the import taxes to protect the oil seed producers from the cheap supplies coming in from Malaysia and Indonesia.
The center has nearly doubled import duty on the crude palm oils making it 15% and also increased the import duty on the refined palm oils and made it 25 %.The duty differential after this hike is nearly 10 percent and is aimed to protect the oil seed farmers. The move will encourage and boost local growing and processing of the oil seeds as well.
The government has also increased the taxes on import of crude soy oil by 5% points that are from 12.5% it becomes 17.5%.
The oil seed growing and crushing industry is welcoming the move as it will protect them from price pressure due to cheap imports, low domestic prices, and large inventories.
Vegetable oils are the third biggest commodity of import by India preceded by crude and gold only.
The country is spending nearly $10 billion annually for the import of palm oil from Malaysia and Indonesia and smaller amounts of soy oil from Brazil and Argentina.
Due to larger stocks and reduced prices of oil stock, farmers are bearing the brunt. Farmers in Maharashtra and Madhya Pradesh have been protesting asking the government for help. This move will definitely benefit the farmers growing oil seeds.