Farmers fear a price drop after import duty cut in crude edible oil
Oil palm growers in India are dismayed by the recent reduction in import duty on crude edible oil, fearing it will hurt prices and derail self-sufficiency efforts. Farmers like Mahesh Reddy from Khammam had anticipated strong returns, with Fresh Fruit Bunch prices having surged 60% last year. The policy shift now creates uncertainty for domestic cultivators.
The reduction in duty on the import of crude edible oil has come as a shock to oil palm growers in the country. They alleged that the move would adversely impact their prospects and the country’s efforts to achieve self-sufficiency in edible oils.
“It leads to uncertainty as farmers were expecting to reap a good price scenario before the reduction in duties,” Mahesh Reddy, who grows oil palm in about 8 hectares in Khammam, told businessline.
Because of an increase in import duties on raw edible oil last year, the prices of Fresh Fruit Bunches (FFBs) went up by up to 60 per cent in just one year to reach ₹21,000 a tonne.
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Source : The Hindu Business line
