India ramps up import tariffs on soybeans, edible oils

India has hiked its import tariff on soybeans to 45% from 30% and imposed similar import increases in duty on edible oils, according to government documents published late Friday, as India seeks to protect local farmers from cheap imports and encourage planting oilseeds.

The import tax on soybeans will have little impact on international trade, as India is not a significant importer of beans, but the tax hikes on soyoil and palm oil will be felt by exporters.

India has ramped up the basic customs duty on crude soybean oil from 17.5% to 30%, on refined soybean oil from 20% to 35%, on crude palm oil from 15% to 30% and on refined palm oil from 25% to 40%

India is the world’s largest importer of edible oils, expected to buy around 4 million mt of soyoil, 8.5 million mt palm oil and around 2 million mt of sunflower oil per year.

The tax hikes are expected to impact Argentina, which exports up to half of the world’s 11 million mt of soybean oil that changes hands internationally.

The move comes at a bad time for Argentinian sellers of soybean oil.

Earlier this month the US slapped a 72% duty on imports of Argentinian biofuels made from soybean oil, a move that triggered a call for the European Union to do the same.