Edible oil industry body SEA has demanded that the government should raise import duty on refined palm oil to 40% from the current 32.5% to protect the domestic processing industries. Solvent Extractors' Association of India President Sanjeev Asthana has written a letter to Union Food and Cosnumer Affairs Minister Pralhad Joshi requesting him to raise import duty difference between CPO and RBD Palmolein for providing level-playing field to domestic refining industries.
"This import of finished goods is contrary to our national interests and is seriously affecting the capacity utilisation of our palm refining industry," Asthana said, adding that the refined palmolein is cheaper by $50 per tonne currently.
"The main reason for rise in palmolein imports is the encouragement given by exporting countries (Malaysia and Indonesia) to their industry. They have kept high export duties on CPO and low export duty on palmolein (finished prduct)," he said.
Asthana urged the minister to increase RBD palmolein duty from current level of 32.5% to 40%.
Effective Sept. 14, 2024, the Basic Customs Duty on Crude Soybean Oil, Crude Palm Oil, and Crude Sunflower Oil has been raised from zero to 20%, making the effective duty on crude oils to 27.5%.
Additionally, the Basic Customs Duty on Refined Palm Oil, Refined Sunflower Oil, and Refined Soybean Oil has been increased from 12.5% to 32.5% making the effective duty on refined oils at 35.75%.
India meets more than 50% of its edible oil requirement through imports.
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