NITI Aayog calls for raising import duty on edible oil
NITI Aayog has proposed increasing import duties on edible oils and creating a significant duty gap between crude and refined oils to boost domestic production and reduce reliance on imports, which currently meet 55-60% of India’s needs. The report suggests a cluster-based seed hub approach, promotion of biofortified varieties, and advancements in processing technologies to enhance self-sufficiency in edible oil production.
NITI Aayog has called for higher import duty on edible oils and a substantial duty gap between crude and refined oil along with incentives to farmers to help India become Atmanirbhar in edible oil production.
In its report on Pathways and Strategy for Accelerating Growth in Edible Oil Towards Goal of Atmanirbharta, the Aayog proposed cluster-based seed hub approach, promotion of bio fortified oilseed varieties, adoption of new technologies and value addition through processing and refining, among others as part of the multi-pronged strategy to enhance oil seed production in the country.
“India’s heavy reliance on edible oil imports, currently accounting for 55-60% of its needs, presents a substantial challenge to its food security and economic stability,” the Aayog said in the report, laying out a roadmap for India to become self-sufficient in oil production.
“A flexible tariff structure, responsive to global market prices, domestic supply and demand trends, and the minimum support price (MSP) for oilseeds, offers a strategic approach,” the Aayog said as it proposes a dynamic trade policy for balanced growth of the sector.
“Implementing a higher import duty regime can safeguard domestic production, while a substantial duty gap between crude and refined oil will benefit processing industries,” it said.
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