India considers cutting vegetable oil import taxes as prices climb

India, the world's biggest vegetable oils importer, is ‌considering lowering import taxes on the commodities to try to curb food inflation, two government and two industry sources said on Wednesday, as the peak demand festival season gets under way.

Prices of vegetable oils ​in India have climbed by nearly 20% over the last year and a ​measure that would lower their prices is likely to increase consumption ⁠as households mark festivals from September to November with sweets, snacks and fried treats.

Internationally, ​increased Indian demand would support benchmark Malaysian palm oil and U.S. soyoil futures , analysts say.

India ​meets nearly two-thirds of its vegetable oil demand through imports, mainly palm oil, soyoil and sunflower oil from Malaysia, Indonesia, Argentina, Russia and Ukraine.

Prices have risen because of disruption linked to Russia's war on Ukraine ​and extreme weather linked to El Nino and global warming.

One of the government sources said ​the government was seeking to shield consumers, while protecting farmers' interests.