In a continued effort to stabilize edible oil prices domestically, the government of India has announced the extension of reduced import duty rates for edible oils until March 2025. This decision, as revealed in a government order seen by Reuters, reflects India's position as the world's largest importer of vegetable oil and its commitment to maintaining affordability for its citizens.
Originally, the reduced fares for the Palm oil, Sunflower oil and soy oil (gross) were scheduled to expire in March 2024. However, due to global market fluctuations and the aim to control local prices, the Indian government decided to extend the current tariff regime.
This measure responds to global challenges such as fluctuations in the commodity market and geopolitical or climatic events that affect the production and price of oils. The decision benefits Indian refineries, allowing oil imports at lower costs and ensuring competitive advantage.
Experts see the extension of the reduced tariffs as a sign of the Indian government's commitment to food security and price stability. Furthermore, this measure has the potential to influence the global edible oil market, considering India's weight as a significant importer.
The tariff reduction benefits the Indian edible oil sector, bringing predictability and support in times of global economic uncertainty.
Source: Reuters
