SOPA urges 10% import duty hike on edible oils to shield domestic farmers
The proposed 10% hike would apply across refined and crude edible oil categories, potentially narrowing the price gap between imported and domestically produced oils.
INDIA – The Soybean Processors Association of India (SOPA) has formally requested the central government to raise the import duty on edible oils by 10%, citing urgent concerns over falling domestic oilseed prices and mounting pressure on Indian farmers.
The appeal comes amid a global surplus in edible oil supply, which has led to a sharp decline in local soybean and mustard prices, well below the Minimum Support Price (MSP) set by the government.
In its representation to the Ministry of Consumer Affairs, SOPA argued that the current low import duties are making foreign oils significantly cheaper, thereby undermining domestic production and discouraging farmers from cultivating oilseeds.
Earlier in 2025, the government reduced the import duty on crude edible oils, including crude soybean oil, from 20% to 10% in an effort to control food inflation and boost domestic refining.
However, SOPA noted that this policy decision has severely damaged India’s oilseed economy, as even procured soybean stocks had to be sold at a loss.
The association emphasized that a duty hike would help restore parity, protect farmer incomes, and encourage long-term investment in oilseed farming.
India is one of the world’s largest importers of edible oils, sourcing nearly 60% of its consumption from overseas markets.
Palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Ukraine comprise majority of the import basket.
While this ensures price stability for consumers, SOPA warns that it also exposes Indian farmers to the volatility of global markets and price shocks.
The proposed 10% hike would apply across refined and crude edible oil categories, potentially narrowing the price gap between imported and domestically produced oils.
SOPA believes this measure would not only stabilize local markets but also support the government’s broader goal of achieving self-sufficiency in edible oil production under the National Mission on Edible Oils – Oil Palm (NMEO-OP).
Industry analysts note that while the move could lead to a marginal increase in retail prices, the long-term benefits, such as reduced import dependency and improved farmer welfare, could outweigh the short-term consumer impact.
SOPA has also urged the government to monitor stock levels and prevent speculative hoarding, which often distorts market signals.
The association’s plea comes at a critical juncture, as farmers across key oilseed-producing states, such as Madhya Pradesh, Rajasthan, and Maharashtra, face declining returns.
With sowing season approaching, SOPA hopes the policy shift will incentivize farmers to continue investing in oilseed crops.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
