SOPA urges govt to hike customs duty on edible oil imports by at least 10%
This story was originally published at 13:51 IST on 6 September 2025
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NEW DELHI – The Soybean Processors Association of India has urged the government to increase customs duty on edible oil imports by at least 10% to boost farmers' confidence and incentivise higher domestic oilseed production.
SOPA said low import duties have kept edible oil prices depressed. "Throughout the year (Oct 2024-Sep 2025), soybean mandi prices have remained below the MSP of INR 4,892 per quintal due to depressed prices for soybean meal and oil," the association said in a representation to Agriculture Minister Shivraj Singh Chouhan on Wednesday.
To support farmers, the government procured around 2.0 million tonnes soybean under the price support scheme, resulting in significant additional costs. Currently, the auction of this stock by government bodies in the open market is underway at an average discount of almost INR l0,000 per tonne, amounting to a loss of nearly INR 20 billion, SOPA said.
The soybean MSP has now further increased to INR 5,328 per 100 kg for 2025-26, while low oil and meal prices persist due to reduced import duties and substitution of meal with cheaper distillers dried grains with solubles. "Under similar market conditions, procurement needs may double, pushing the fiscal burden well above INR 5,000 crores (50 billion)," SOPA said.
The association said that a higher duty on imports would reinforce India's progress towards self-sufficiency in edible oils. End
Reported by Afra Abubacker
Edited by Avishek Dutta
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