Call to Roll Back Import Duty Cut on Crude Edible Oil

16-Jun-2025 01:21 PM

Vijayawada. The Chief Minister of Andhra Pradesh has urged the Union Commerce and Industry Minister to roll back the recent 10 percentage point reduction in import duty on crude edible oils. He also requested an allocation of ₹150 crore for the procurement of burley tobacco and sought efforts to remove the import duty imposed by the United States on Indian aquatic animal products.

The Chief Minister pointed out that the basic import duty on crude edible oils was reduced from 20 percent to 10 percent, which has adversely impacted domestic producers. Farmers in Andhra Pradesh, especially those growing oil palm, are not receiving fair and profitable prices for fresh fruit bunches (FFB). He warned that this would hinder the achievement of targets set under the National Mission on Edible Oil.

Andhra Pradesh is a key producer of oil palm and palm oil in India. The state has been actively expanding oil palm plantation areas and promoting new plantations. According to the Chief Minister, ensuring profitable returns for farmers is essential to sustaining this momentum, which depends on the profitability of palm oil processors. The influx of cheap imported palm oil due to the reduced duty is undermining this, making a review of the policy necessary.

Meanwhile, sowing of Kharif oilseed crops—particularly soybean and groundnut—has begun, but the market price of these crops has consistently remained below the minimum support price (MSP). During the 2024-25 Kharif marketing season, government agencies made record purchases of soybean and groundnut under the Price Support Scheme (PSS), yet market prices failed to recover. As a result, many farmers are being forced to sell their produce at distress prices. The recent reduction in import duty on crude edible oils has only worsened their situation, increasing the pressure on domestic oilseed farmers.