India set to hike refined edible oil production.

MUMBAI: India, the world's largest edible oil importer, is set to increase its refined edible oil production capacity. Government is in the process of raising the import duty on refined edible oil, which is mainly imported from Indonesia. This move is likely to help oil mills which have idled 60% of the total refining capacity of 20 million tonne.

According to official sources, the finance ministry will soon take a decision on the quantum of the increase in the import duty which is now at 7.5%. The move will also cut down India's dependence on imports and will bring down the import bill. Imports have become costlier as the rupee has depreciated by about 14% in the last three months to touch its all-time low of Rs 56.37 to a dollar.

The government is looking to increase crude palm oil imports so that refiners could put their idle plants into use. There is a zero duty on imports of crude palm oil. A large number of refiners are on the verge of closure due to the rising imports of refined oil and falling oilseed production in the country.

"It will not only enhance our production capacity but also boost employment in the sector," said Dr B V Mehta, secretary of Solvent Extractors Association of India (SEA). India meets 50% of its total edible oil demand through imports. It imports palm oil mostly from Indonesia and Malaysia.

Source : economictimes.indiatimes.com