What is the significance of increasing import duty on edible oil for farmers
Analyze the implications of the rise in import duty on edible oil on the agricultural sector and farmers' welfare.
- Increasing import duty on edible oil can protect domestic farmers by making imported oil more expensive, encouraging consumers to choose local products.
- It can lead to higher demand for domestically produced edible oil, boosting sales for farmers and improving their income.
- The rise in import duty can also reduce dependency on imported oil, making the country more self-sufficient in meeting its edible oil needs.
- However, if the domestic production of edible oil is insufficient to meet the demand, consumers may face higher prices and potential shortages.
- Farmers may benefit from increased profits in the short term, but long-term sustainability of the agricultural sector needs to be considered to ensure farmers' welfare.
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7 months ago