India to cut soybean oil tariffs to secure US deal
India’s interim trade deal with the US partially opens agriculture, notably by cutting soybean oil duties, boosting US competitiveness versus South America and pressuring palm oil prices. As the world’s largest edible oil importer, India’s policy shift could reshape global oil trade flows and price dynamics.
India is partially opening up its agricultural sector to the US deal. Specifically, the reduction in soybean oil duties is expected to make US supplies more competitive with those from South America and put pressure on palm oil prices, said Aashish Acharya, vice president of Patanjali Foods Ltd., one of India’s largest vegetable oil buyers.
India, the world’s largest importer of palm, soybean and sunflower oils, purchases about 16 million tonnes of vegetable oil annually, mainly from producers in Southeast Asia and South America.
According to a joint statement with the United States on the framework agreement on an interim trade agreement, the world’s most populous country agreed to reduce or eliminate import duties on US food and agricultural products, including dry grain residues, red sorghum for animal feed, soybean oil, nuts, and fresh and processed fruits. India also agreed to eliminate long-standing non-tariff barriers to trade in US food and agricultural products.
According to a June report by McKinsey & Co., the Indian agriculture sector is valued at $580-$650 billion and is expected to grow to $1.4 trillion by 2035.
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Source : Ukr Agro Consult
