| Date: |
17-09-2015 |
| Subject: |
Government mulls import duty hike on edible oil |
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NEW DELHI: Amid demands for hike in import duty on edible oil to protect the domestic industry, Finance Ministry today discussed a proposal to raise the levy.
Revenue Secretary Hasmukh Adhia today held a meeting with officials from the departments of commerce and consumer affairs, but no decision could be taken, sources said, adding that there would be more meetings on the subject.
Import duty on crude edible oil currently stands at 7.5 per cent, while that on refined stands at 15 per cent.
According to industry estimates, edible oil imports are likely to increase to 14 million tonnes in the 2014-15 oil year (November to October) from 11.6 million tonnes in the previous year.
Solvent Extractors' Association Executive Director B V Mehta said that looking at the current conditions, the industry had demanded to raise the import duty on crude edible oil from 7.5 per cent to 25 per cent and refined edible oil from 15 per cent to 45 per cent, thus maintaining the duty difference of 20 per cent.
"We need to check import of cheaper oil to protect the interest of farmers and domestic processing industry," Mehta told PTI.
He added that the prices of imported palm oil have fallen sharply in the last one-and-half years.
Earlier, the industry had said that India is being used as a dumping ground for excessive supply of edible oils in the world market.
"Excessive import has put tremendous pressure on the local prices, which are at a level where Indian oilseeds growing farmers are in distress and losing interest in oilseed crop," Solvent Extractors' Association said.
Imports of vegetable oils, which includes both edible and non-edible oils, rose by 23 per cent to 11.72 million tonnes during November-August period as against 9.52 million tonnes in the same period last year.
Source : economictimes.indiatimes.com
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