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NITI Aayog, the government’s premier think tank, has recommended a significant increase in import duties on edible oils. This proposal is aimed at reducing the country’s heavy reliance on imports, which currently account for over 60% of its edible oil consumption, and fostering a robust domestic production ecosystem.
The recommendation comes as India faces a growing import bill due to rising global prices of edible oils, which has put pressure on both consumers and the domestic economy. NITI Aayog’s proposal suggests that by raising import duties, the government can create a more favourable environment for domestic farmers and producers, encouraging them to increase the cultivation of oilseeds such as mustard, soybean, and sunflower. This, in turn, would help India reduce its dependence on imports and move towards self-sufficiency in edible oil production.
According to officials at NITI Aayog, the proposed increase in import duties would be accompanied by targeted support for domestic producers, including subsidies, improved access to technology, and enhanced infrastructure for oilseed processing. The think tank argues that such measures are essential to stimulate domestic production and ensure that Indian farmers can compete effectively with international producers.
The recommendation aligns with the Indian government’s broader agenda of promoting ‘Atmanirbhar Bharat’ (Self-Reliant India), which emphasizes reducing dependence on imports across various sectors. In recent years, India has taken several steps to boost domestic production of essential commodities, and the focus on edible oils represents a continuation of this strategy.
However, the proposal to raise import duties on edible oils has sparked a debate among industry stakeholders. While domestic producers and farmers have welcomed the move, some economists and consumer groups have expressed concerns about potential short-term price increases that could impact consumers, particularly in the lower-income segments. They argue that any increase in import duties should be carefully calibrated to avoid causing undue hardship to consumers while still achieving the desired boost in domestic production.
In response to these concerns, NITI Aayog has emphasized the need for a balanced approach. The think tank is advocating for a gradual increase in duties, coupled with measures to ensure that the benefits of higher domestic production are passed on to consumers in the form of stable and affordable prices. Additionally, the government is expected to introduce initiatives to improve the efficiency of the edible oil supply chain, reducing wastage and improving distribution.