India has turned into one of the world’s leading vegetable oil importers in recent years because of a slump in local production, strong domestic demand and depressed world prices. The Central ministry is now looking into demands by the edible oils industry for a fresh increase in duties. The Solvent Extractors Association of India and other industry bodies have sought a fresh increase in oil import duties to protect the sector, hit by cheap imports. In June the government raised import duties on edible oils but the increase fell short of market expectations and affected little on imports. Traders reported that the effective duty for RBD palmolein and refined vegetable oils after the increase worked out at 44 percent, and at 27.5 percent for crude oils. Industry has favoured an effective import duty of 60 to 80 per cent on refined oils and 38.5 per cent on crude oils, as stated. It is further added that global stock surplus had helped to boost imports, government can only raise duties, cannot stop imports. In order to give incentives to farmers for growing oilseeds instead of food grains a policy to be formulated by the agriculture ministry. In the budget for the fiscal year to March 2001 import duties allowed for palmolein and certain other oils to push up to 100 per cent. |
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