(MENAFN- KNN India) New Delhi, Oct 15 (KNN) India should maintain a minimum import duty difference of 7.5–10 per cent between crude and refined edible oils to safeguard the domestic processing industry and ensure market stability, according to a new research paper titled Tariff Volatility and Stakeholder Dynamics in India's Edible Oil Sector.

The study also recommended a consistent three-to-five-year policy framework on import tariffs to reduce market uncertainty.

The paper, jointly published by the Centre for Economic Studies and Planning (CESP) at Jawaharlal Nehru University (JNU), VeK Policy Advisory and Research, and the Associated Chambers of Commerce and Industry of India (Assocham), highlighted that frequent changes in import duties have created instability in the edible oil market over the past decade.

Between 2011 and 2021, tariffs on crude palm oil, refined palmolein, soybean oil, and sunflower oil were altered over 25 times, swinging from nearly zero during inflationary periods to as high as 70 per cent during protectionist phases.

Currently, the effective import duty on crude palm oil stands at around 27.5 per cent, while refined palm olein and palm oil face a 35.75 per cent duty - an 8.25 per cent differential. Palm oil alone accounts for nearly 60 per cent of India's total edible oil imports, making it central to tariff decisions.

The report suggested that future policy should define clear criteria for tariff revisions, such as international price thresholds and domestic inflation levels.

It also proposed a 30–60-day advance notice for any duty changes and the formation of a tariff review committee to improve coordination among ministries like finance, commerce, consumer affairs, and agriculture.

Predictable import duty policies, the paper said, would help stabilize prices, control inflation, protect consumers, and enhance India's resilience to global market disruptions.

(KNN Bureau)

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