A parliamentary committee has urged the government to dynamically adjust import duties on edible oils based on domestic production levels to shield farmers from cheap imports. India imports 56% of its edible oil needs. The panel also proposed specific safeguards for palm oil imports.
The Standing Committee on Agriculture, Animal Husbandry and Food Processing has recommended that the government develop a mechanism to dynamically adjust import duties on edible oils based on domestic production levels, protecting farmers from cheap imports. Headed by Congress MP Charanjit Singh Channi, the committee noted in its report that India imports 56% of its edible oil requirements.
"The Committee strongly recommend that the Government should devise such mechanism wherein import duties get dynamically adjusted based on domestic production levels to protect farmers from cheap imports," the report stated.
Specifically for palm oil, the panel suggested imposing a 20% safeguard duty—or such percentage as deemed relevant by authorities—when global prices fall below $800 per tonne, or any other rate fixed by the government, to support Indian farmers.
To boost palm oil production, the committee urged fast-tracking the National Mission on Edible Oils-Oil Palm (NMEO-OP), providing adequate Viability Gap Payments (VGP) for Fresh Fruit Bunches (FFBs), and subsidizing planting material costs up to 80%.
These measures aim to safeguard domestic farmers amid heavy reliance on imports.
