Telangana is formally requesting the Indian central government to raise the import duty on crude palm oil (CPO) to 44%, a significant increase from the current 10% rate.
State IT and Industries Minister Duddilla Sridhar Babu raised the proposal during a meeting with Union Commerce and Industries Minister Piyush Goyal in New Delhi on Monday.
The pitch for higher tariffs aims to shield domestic edible oil processors and farmers from cheaper imports.
A duty hike of this magnitude would substantially increase the landed cost of palm oil, potentially narrowing the price gap between imported palm oil and domestically produced alternatives like rapeseed or sunflower oil.
Such a move would also impact inflation dynamics for cooking oils, a key component of consumer price indices in India.
This development adds to a broader pattern of trade policy adjustments in India, which has recently imposed anti-dumping duties on specific chemicals used in the rubber and tyre industries.