Govt imposes 2.5% duty on import of crude edible oils

In a move aimed at protecting domestic oilseed farmers, the government imposed 2.5% import duty on crude edible oils without any hike in duties on refined cooking oil fearing rise in retail prices.

The decision, however, was not supported by the Industry which said that such a move will adversely affect the sector as well as farmers.

Currently there is no duty on crude edible oil while it is 7.5% on refined edible oil.

The domestic edible oil refining industry is already facing tough time due to inverted duty structure of Malaysia and Indonesia, major suppliers of crude and refined palm oil. The industry had requested the government to increase import duty on crude palm oil to 10 % and refined palm oil to 20% to protect soyabean and mustard farmers who are facing a tough time in fetching good prices due to heavy oil imports.

India imports about half of its total domestic requirement of cooking oil.

The total imports of vegetables oils (edible and non-edible oil) in 2011-12 oil year were at all-time high of 10.19 million tonnes. The Agriculture Ministry had suggested raising the duty on crude edible oil to defend the interest of palm growers, particularly from Andhra Pradesh.

Month: Current Affairs - January, 2013