| Date: |
19-08-2015 |
| Subject: |
SOPA pitches for 30% hike in import duty on edible oils |
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NEW DELHI: Industry body SOPA has requested the Government to increase the customs duty on crude and refined edible oils by another 30 per cent, a step that it believes will encourage domestic production to support the 'Make In India' programme.
"India is expected to import over 12 million tonnes of edible oils, which is a new all time high. The situation has become so grim that the soybean processing industry/Indian oilseed industry is finding it difficult to survive," SOPA Chairman Davish Jain said in a letter to Finance Minister Arun Jaitley.
The last increase of customs duty on refined and crude edible oils was by 5 per cent in December, 2014. At present, the duty on import of crude oil is 7.5 per cent and on refined, it is 15 per cent.
Soybean Processors Association of India (SOPA) said because of over supply of edible oils in the world, the prices have continued to fall, neutralising duty increase and the prices are now at a five-year low.
"We would, therefore, once again request you to kindly increase the customs duty by another 30 per cent... taking it to 37.5 per cent on crude and 45 per cent on refined edible oils," SOPA said in the letter.
It also added that in the wake of current global scenario, the increase in import duty will not have any adverse impact on consumer prices.
"India has become a dumping ground for cheap edible oils and the current level of imports is excessive, leading to unnecessary build up of stocks and also over consumption," the letter added.
The industry body added that increase in import duty would help the domestic farmers and encourage domestic production to support the 'Make In India' objective.
Meanwhile, Solvent Extractor's Association (SEA) sought increase in import duty on crude edible oil to 25 per cent and 45 per cent on refined oil.
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.
According to the government data, farmers have sown oilseeds in 163.79 lakh hectare till August 14 during the current kharif season that started from June, as against 160.83 lakh hectare in the year-ago period.
Source : economictimes.indiatimes.com
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