India evaluating plans to increase import tax on refined edible oil
India is evaluating plans to raise the import tax on refined edible oil, in order to discourage the…India is evaluating plans to raise the import tax on refined edible oil, in order to discourage the rising shipments from Indonesia and Malaysia, which are affecting the local refiners.
Currently, India imposes a 7.5% tax on edible oil imports. Domestic refiners have been complaining that their business is under pressure after Indonesia increased export tax on crude palm oil in order to promote local production of refined oil, reported the Wall Street Journal.
In addition, bulk buyers of refined oil have increased their purchases from Indonesia and Malaysia, further putting pressure on local refiners.
According to the Solvent Extractors' Association of India, imports of refined palm oil from Indonesia and Malaysia by bulk consumers increased by 16% to 1.25 million metric tons in the first seven months of this marketing year.
According to a senior food ministry official, Indian government will likely raise the import tax on refined products by 2.5 percentage points within a month, reported Wall Street Journal.
India's edible oil imports have been soaring over the past ten years, reaching 10 million tons in the last marketing year ended 31 October.
