| Date: |
05-12-2015 |
| Subject: |
Agriculture Ministry proposes further 5% hike in import duty of edible oil |
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NEW DELHI: The Agriculture Ministry has proposed further hike in import duty of edible oils by 5 per cent in a bid to protect the interest of farmers.
In September, the government had raised import duty on crude edible oils to 12.5 per cent from 7.5 per cent, while the duty on refined edible oils was increased to 20 per cent from 15 per cent.
"Farmers have been affected due to rise in import of edible oils. We have proposed the Finance Ministry to consider 5 per cent increase in import duty from the current level," a senior Agriculture Ministry official told PTI.
The Ministry has proposed increase in import duty on crude edible oils to 17.5 per cent and on refined edible oils to 25 per cent from the existing level, the official said.
The proposal has been moved following several demands from state governments, especially Andhra Pradesh, as well as from the industry body Solvent Extractors' Association (SEA).
As per the ministry's data, area sown to oilseeds remained down at 57.08 lakh hectare till last week of the ongoing rabi season that started from October, as against 65.73 lakh hectare in the year-ago period.
SEA has demanded an import duty hike on crude oil to 25 per cent and that of refined oil to 45 per cent to protect the interest of crushers and also local farmers to sustain their interest in oilseed cultivation.
The country's edible oil imports rose by 24 per cent to 14.42 million tonnes in the 2014-15 oil year that ended in October due to fall in international prices, SEA data said.
About 60 per cent of India's annual edible oil demand of 18-19 million tonnes is met through import, mostly from Malaysia and Indonesia.
Source : economictimes.indiatimes.com
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