COMMODITY
SOPA urges govt to increase import duty on edible oils by at least 10%
Sep-08-2025

The Soybean Processors' Association of India (SOPA) has urged the government to increase import duty on edible oils by at least 10 per cent to protect farmers from sluggish domestic prices that have discouraged cultivation. The cheaper imports and depressed domestic oilseed prices have led farmers to reduce or abandon oilseed cultivation. Such a measure will go a long way in restoring farmers' confidence, incentivising greater oilseed production, and reinforcing India's journey towards self-sufficiency. The appeal comes as the area under soybean cultivation has declined by over 5 per cent this year, with farmers disheartened by poor price realisation.

Throughout the current marketing year, soybean prices have remained consistently below the minimum support price (MSP), compelling the government to step in with procurement operations. In May, the government reduced import duty on crude edible oils, including crude soybean oil, from 20 per cent to 10 per cent to encourage domestic refining and control food inflation. However, the duty on refined edible oils was kept unchanged at 35.75 per cent. 

Even after government procurement, stocks had to be liquidated at a loss. Based on the current crop situation, there is a high probability that the government may once again be required to procure soybeans, involving an expenditure of more than Rs 5,000 crore. SOPA argued that the long-standing policy of permitting imports at nil or very low duties has ‘inflicted serious damage on the oilseed economy of the country’. 

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