Impact of US Tariff Policy on the Decrease in Food Oil Prices in India

Unexpectedly for many, the recent tariff increases imposed by US President Donald Trump have led to a 7-8% decrease in food oil prices in India. According to analytical sources, following the implementation of tariffs in April 2025, the import price of both crude and refined palm oil fell by approximately this amount, providing significant relief for domestic consumers in the country.

This is reported by AgroReview

The price drop is attributed to a combination of factors, including the global impact of American tariffs and concerns about a potential recession, which have caused a significant decline in global oil prices. This, in turn, has negatively affected food oil markets worldwide. In particular, the price of crude soybean oil, which is important for India, decreased by nearly $48 per ton during the period from April 11 to April 21.

Impact of Price Decrease on Indian Consumption

India, being one of the largest importers of food oils in the world, heavily relies on imported products to meet domestic demand. The decrease in prices creates additional opportunities for households that previously faced high cooking oil costs. This helps to alleviate financial burdens, especially considering the rise in inflation.

However, experts warn that these benefits may be temporary. They state that if global trade tensions escalate or persist, food oil prices may rise again, negating the current decrease. The tariff war creates uncertainty in global markets and may affect the stability of supply and prices in the long term.

Currently, despite the negative consequences for global trade, US tariff policy has provided short-term relief to Indian consumers in the form of lower food oil prices. Nevertheless, long-term prospects depend on the development of the international situation and trade relations between countries.