Increase in import duty on edible oil

The Centre has increased the duty on refined oils to curb surging imports of edible oil. The consumer affairs and public distribution ministry said in a statement that refined vegetable oils, other than coconut oil, RBD palm oil, RBD palm kernel and palm stearin, would now attract a duty of 35 % against the earlier 15 %.

Local vanaspati makers were using large quantities of imported oils, especially crude palm oil and refined palm olein, because of their attractive prices, said analysts. According to the SEAI, India imported 1.57m tonnes of edible oil in the first five months of ‘99-00 (November-October), compared with 1.15m tonnes in the year ago period.

The ministry said the import duty on crude vegetable oils had been raised to 25% from 15%, and crude palm oil, which was imported from the manufacture of vanaspati at a basic 15%, would now be available at this rate only to manufacturers with captive hydrogen generation facilities. All other edible oils, including coconut oil, would be set at a 45% basic duty, except for olive oil at 40%. The basic import duty on oil-bearing materials, rice bran and oilcakes was reduced to 15 % from 35%.

Market Update
(Oil Seeds)