Experts take on India’s import duty hike on edible oils, implications for prices and farmers
The finance ministry announced a 20% hike in import duties on crude and edible oils, expected to raise retail prices and food costs, potentially dampening consumer demand. This decision aims to curb imports while supporting Indian farmers by stabilizing domestic prices. Industry leaders, like Dorab Mistry, welcomed the move, highlighting benefits for soybean and mustard farmers despite higher consumer prices.
The finance ministry introduced several significant notifications in the commodity market last week, the most prominent being a 20% hike in import duty on crude and edible oils.
This decision is expected to have wide-reaching effects, with retail prices of edible oils potentially rising, which in turn could increase the prices of food in eateries and dampen consumer demand.
The move could also reduce imports of palm, soy, and sunflower oils. However, this hike provides a notable advantage for Indian farmers by preventing imported oils from undercutting domestic prices.
Industry leaders have shared their views on this development. Dorab Mistry, Director of Godrej International, praised the government, noting that the decision will boost confidence among soybean farmers.
According to him, the higher returns for soybean farmers could also motivate mustard farmers to plant more crops, achieving dual benefits. While consumers may face higher prices, Mistry emphasized the importance of supporting agriculture and reducing dependency on imports.
Recommended for you
