In a move aimed at bolstering the interests of Indian farmers, Union Minister of Agriculture and Farmers Welfare Shivraj Singh Chouhan announced a significant policy shift concerning the import of edible oils. The Modi government has decided to raise the import duty on edible oils from the current 0% to 20%. This adjustment will result in a total effective duty of 27.5% once additional measures are included.
The policy change is expected to have a substantial impact on both the domestic edible oil market and the soybean crop industry. By increasing the import duty, the government aims to make imported edible oils more expensive, thereby encouraging manufacturers to source soybeans and other crops from local farmers. This move is anticipated to provide a more equitable price for Indian farmers, helping them secure a fair value for their produce.
Chouhan highlighted that the decision would not only benefit soybean farmers but also stimulate the production of soya meal, which is expected to see a rise in export volumes. Furthermore, the increased import duty is anticipated to support various sectors related to soybean cultivation, fostering broader economic growth in the agricultural sector.
The policy shift aligns with the government’s ongoing efforts to strengthen domestic agriculture and ensure that Indian farmers receive fair compensation for their crops. By incentivizing local production and reducing dependency on imported oils, the decision is poised to enhance the sustainability and profitability of the Indian agriculture sector.
This new import duty structure is set to take effect soon, marking a significant step in the government’s strategy to support and uplift the farming community across the country.
The Government has also decided to raise the basic import duty on refined oils to 32.5%. This policy change is expected to boost the demand for mustard, sunflower, and peanut crops.
As a result of the increased import duty, farmers are likely to receive better prices for these crops. Additionally, the expansion of refineries in small and rural areas will create more job opportunities, further benefiting local economies.
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