India considers tax cut on soybean and sunflower oil to cool prices

India considers tax cut on soybean and sunflower oil to cool prices

The government is deliberating whether to reduce the agriculture infrastructure and development cess, which is currently 5 percent, or abolish it, according to a person familiar with the matter.





May 24, 2022 / 05:34 PM IST





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India is considering cutting an import levy on soybean and sunflower oils, another step in a series of measures the country has taken to cool surging local prices of food.

The government is deliberating whether to reduce the agriculture infrastructure and development cess, which is currently 5 percent, or abolish it, according to a person familiar with the matter.

A final decision may be taken this week, said the person, who asked not to be identified as the information is private. A finance ministry spokesperson was not immediately available to comment.

The extra levy is used by the government to collect funds for farm infrastructure projects.

Curbing the tax could be one of the limited options available for the government to reduce surging vegetable oil prices in the world’s second most-populous nation. India has already scrapped base import levies on most cooking oils, including palm oil and soybean oil, and imposed inventory limits to prevent hoarding.

Edible oil prices in India, which