Increase import duty on refined palmolein: Solvent Extractors Association.

NEW DELHI: Concerned about cheaper imports of refined palm oil, the edible oil industry has asked the government to raise the duty on refined palmolein to 10% from existing 7.5%.

Solvent Extractors Association (SEA), a trade body, said the proposed hike will maintain the ideal duty differential of 7.5% between refined edible oil and crude palm oil as recommended by the Lahiri committee, set up by government in 2006 to examine prices of edible oils.

India last month imposed a 2.5% import duty on crude palm oil but left the duty on refined edible oil unchanged at 7.5%, translating the duty differential to a mere 5%. India meets 50% of its edible oil requirements through imports from Malaysia and Indonesia. The country has an annual refining capacity of 20 million tonne.

"For the industry to survive, there has to be the duty differential of at least 7.5%," said Vijay Data, president, Solvent Extractors Association (SEA).


Source : economictimes.indiatimes.com