Govt considering restructuring of import duty on edible oils.

NEW DELHI: The government is considering the proposal to restructure import duty on refined edible oils and crude (vegetable) oils, Parliament was informed today.

In a written reply to Lok Sabha, Food Minister K V Thomas said: "A proposal for restructuring of import duty on edible oils, which includes change in import duty structure on refined edible oils and crude oils, is currently under consideration of the government."

India is the world's second-largest importer of cooking oil.

At present, the import duty on refined oils is at 7.5 per cent. In January this year, the government imposed a duty of 2.5 per cent on crude (vegetable) oil from zero duty earlier.

Industry body Solvent Extractors Association (SEA) has been demanding a hike in import duty of refined oils to 12.5 per cent to curb imports and protect domestic refineries.

Thomas said there was an increase in import of refined edible oil in the marketing year 2012-13 (November-October), while the import of crude palm oil during the period remained more or less same, as compared to previous marketing year (2011-12).

According to the data tabled in the House, the import of refined edible oil has increased to 2.23 million tonnes (MT) in the marketing year 2012-13 as against 1.57 MT in 2011-12. While, imports of crude palm oil has marginally decreased to 5.88 MT in 2012-13 from 5.99 MT a year ago.

Edible oil imports rose to 10.39 MT in 2012-13 from 9.98 MT in the previous year, while the imports of non-edible oils increased to 2,93,534 tonnes during the period under review, from 2,11,098 tonnes in 2011-12, as per the SEA data.

Source : economictimes.indiatimes.com