The move, which is likely to be announced in the coming weeks, could dampen demand and reduce overseas purchases of palm oil, soyoil, and sunflower oil.
“We are exploring all options to help farmers. Increasing import taxes is one of the options,” said a government source who asked not to be named in line with official rules.
There is a proposal from the farm ministry, and the Department of Revenue, which falls under the finance ministry, will take a final call, said another government official, who also declined to be named.
In 2022, India, the world’s biggest vegetable oil importer, abolished basic import taxes on crude vegetable oils to cool prices. New Delhi still levies a 5.5% tax, known as the Agriculture Infrastructure and Development Cess.
A government spokesman did not immediately respond to a request for comment.