Archive · 26 Sep 2026
Oil Palm Farmers Resist Centre’s Import Duty Reduction
The government lowered the basic tax on imported palm oil from 10% to 5%.
Oil palm farmers in three Indian states say this could hurt them.
They worry that imported oil will compete with oil produced by Indian farmers.
Farmer groups say the government is helping oil refiners more than growers.
They want a higher price for the fresh fruit bunches they sell.
They are asking for ₹25,000 per tonne as the minimum support price.
They also want the import duty restored to 49%, which they say was the level in 2021-22.
The farmers criticized the government for changing the duty without consulting the agriculture ministry.
Farmers’ associations in Andhra Pradesh, Telangana and Karnataka oppose reducing the basic palm oil import duty from 10% to 5%.
They say cheaper imports would expose lakhs of domestic oil palm farmers to stronger competition.
Farmer leaders argue government policy favors refiners while cultivation costs and grower concerns remain unaddressed.
They seek a minimum support price of ₹25,000 per tonne for fresh fruit bunches and restoration of the import duty to 49%.
The associations say the duty gap between crude and refined palm oil has widened from 7.5% in 2019-20 to 24.75%.
- Who
- The National Oil Palm Farmers Association and farmers’ welfare associations in Andhra Pradesh, Telangana and Karnataka.
- What
- They opposed the Centre’s reduction of the basic palm oil import duty from 10% to 5%.
- When
- The decision was reported after a recent visit by Union Agriculture Minister Shivaraj Singh Chouhan to Hyderabad; the article also references 2019-20 and 2021-22 duty levels.
- Where
- The issue concerns India, particularly Andhra Pradesh, Telangana and Karnataka; the minister’s visit mentioned in the article took place in Hyderabad.
- Why
- Farmers say lower import duties would increase competition from imported palm oil, hurt domestic growers and favor refiners.
- Current basic import duty
- 5%, reduced from 10%
- Farmers’ requested import duty
- 49%, described as the 2021-22 level
- Requested minimum support price
- ₹25,000 per tonne of fresh fruit bunches
- Duty gap in 2019-20
- 7.5% between crude and refined palm oil
- Current duty gap
- 24.75% between crude and refined palm oil
- Represented states
- Andhra Pradesh, Telangana and Karnataka
- Farmers’ organizations
- National Oil Palm Farmers Association and the three state oil palm farmers welfare associations