Import Duty Uproar: Can India’s Palm Oil Industry Survive the Price War?

The Solvent Extractors' Association of India (SEA) has called for the government to hike the duty on the import of refined palm oil from 32.5% to 40%. In a letter to Union Food and Consumer Affairs Minister Pralhad Joshi, SEA President Sanjeev Asthana pointed out that the existing duty structure is prejudicing the domestic processing sector by providing an unfair advantage to imported refined palmolein, which stands at around $50 per tonne lower than domestic refineries currently.

 

Asthana pointed out that the exporting nations such as Malaysia and Indonesia have imposed heavy export duties on crude palm oil (CPO) and low duties on palmolein which is finished, promoting exports of refined products to the detriment of Indian refiners. He cautioned that further imports of finished products jeopardize India's palm refining sector capacity utilization and viability.

 

SEA's request comes in the wake of recent government actions that already increased the base customs duty on processed edible oils to 32.5%, thus making the effective duty 35.75%. With India importing more than half of its edible oil needs, the industry contends that another increase is necessary to ensure a level playing field and safeguard national interests.

 

Source: The Economic Times