
Agriwatch Market Intelligence
June 19, 2025 at 07:13 AM
*Edible Oil Duty Cut Raises Alarm Over MSP Impact, Farmer Viability*
India’s 11% customs duty cut on crude edible oils, effective May 30, 2025, has raised concerns among oilseed farmers and processors, as it follows an MSP hike amid low inflation and may lead to cheaper imports, price drops, and reduced Kharif oilseed sowing. This risks pushing farmers toward crops like paddy and maize, weakening edible oil self-reliance. The move could also hurt soybean meal exports due to high costs and DDGS blending norms, while small processors face margin pressure. Therefore, it is urged to restore import duties based on global prices, maintain a crude-refined duty gap, impose a minimum import price, suspend SAFTA duty-free imports, strengthen MSP procurement, and revive the Bhavantar scheme.