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Exclusive: India puts on hold proposal to cut import tax on edible oils - sources

India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told Reuters.

A man pedals a tricycle loaded with empty cooking oil containers in Kolkata
FILE PHOTO: A man pedals a tricycle loaded with empty cooking oil containers in Kolkata, India, April 17, 2018. REUTERS/Rupak De Chowdhuri

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NEW DELHI/MUMBAI: India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told Reuters.

The world's biggest vegetable oil importer was considering reducing import taxes after domestic soyoil and palm oil prices more than doubled in the past year, hitting consumers already stung by record fuel prices and reduced incomes amid the COVID-19 pandemic.

"We are not cutting import duties now, a more longer term solution has to be found. Cutting duties is not a sustainable solution," said a government official with knowledge of the matter who asked not be be identified.

(Reporting by Rajendra Jadhav, Aftab Ahmed and Mayank Bhardwaj; Editing by Sanjeev Miglani and Jacqueline Wong)

Source: Reuters