India increases palm oil import tariffs by 6-11%
01/11/2022 (CNBC TV 18) - After a long buzz, the government decided to increase palm oil import tariffs by 6-11 percent. The decision comes as a part of the government's effort to help farmers who are reeling from lower oilseed prices.
After the import tariff hike news, fast-moving consumer (FMCG) stocks such as Hindustan Unilever, Britannia, Nestle India, and Godrej Consumers remained more or less flat.
The government, in its released gazette notification, said that the crude palm oil (CPO) import tariff is now raised to $952 from $858 per tonne, whereas the RBD (refined, bleached and deodorised) palm oil import tariff stands at $962 from $905 per tonne earlier. New Palm Oil import (others) tariff was raised to $957 from $882 per tonne.
The new import tariff for crude palmolein stands at $968 while at $971 and $970 for RBD Palmolein and Palmolein (others), respectively.
The list also includes crude soya bean oil, whose new import tariff now stands at $1,345 per tonne, whereas the brass scrap (all grades) tariff is increased to $4.518 per tonne.
Earlier this year, India abolished the basic import tax on crude palm oil to keep a lid on prices. The government revises base import prices of edible oils, gold and silver every fortnight.
The world's biggest vegetable oil importer, India, meets more than 70 percent of its demand through imports from Russia, Ukraine, Malaysia, Indonesia and others. Palm oil constitutes nearly two-thirds of its vegetable oil imports.
In the past, Prime Minister Narendra Modi has many times expressed his concerns over the rising vegetable oil import bill and urged farmers to boost oilseeds output.