No Duty Rejig Now On Refined Palm Oil Import
MUMBAI: "I can't guarantee that the duty on refined palm oil packs from Indonesia and Malaysia will be raised," KV Thomas, Union food minister, told ET on Saturday. He was responding to a demand by the local edible oil industry that the duty on imported refined oil be based on the invoice value rather than on tariff value, which was substantially lower. Thomas, minister of state for consumer affairs, said any decision on reviewing duty was the prerogative of the revenue ministry and the commerce ministry which would examine the implications of allowing import of refined oil in small packs.
"The empowered group of ministers (E-GoM ) decided to retain a 7.5% import duty on bulk refined oil imports and to keep crude oil imports exempt when it met on September 13. The trade represented by Solvent Extractors' Association met me a day or two later with its demand.
Had they placed their demand with me earlier, I would have put the matter before the E-GoM . Now, it will have to be taken up at the next E-GoM meeting when the finance minister returns from overseas." The industry call for raising duty came after Indonesia, from which India imports a bulk of the 6.5 million tonne palm oil every year, recently slashed export duty on refined palmolein packs to 2% from around 10%.
This, the industry fears, would put them at a competitive disadvantage to cheaper exports and reduce crushing of crude palm oil, which would create a shortage in the local market and ultimately increase the prices consumers pay. Dinesh Shahra, MD, Ruchi Soya Industries, whose Ruchi Gold is India's largest single oil brand, said the landed price of refined palmolein would be cheaper than locally produced palmolein .
"This would gradually lay idle the domestic industry's refined capacity which had been doubled to 12 mt a year, which in turn could increase the pricing power of exporters on the back of shortages at home (since CPO refining would slow down significantly ). Finally, the common man would have to pay more for edible oil. We hope the government addresses industry concerns ," Shahra said. He was speaking on the sidelines of the Globoil conference in Mumbai.
Source : economictimes.indiatimes.com
"The empowered group of ministers (E-GoM ) decided to retain a 7.5% import duty on bulk refined oil imports and to keep crude oil imports exempt when it met on September 13. The trade represented by Solvent Extractors' Association met me a day or two later with its demand.
Had they placed their demand with me earlier, I would have put the matter before the E-GoM . Now, it will have to be taken up at the next E-GoM meeting when the finance minister returns from overseas." The industry call for raising duty came after Indonesia, from which India imports a bulk of the 6.5 million tonne palm oil every year, recently slashed export duty on refined palmolein packs to 2% from around 10%.
This, the industry fears, would put them at a competitive disadvantage to cheaper exports and reduce crushing of crude palm oil, which would create a shortage in the local market and ultimately increase the prices consumers pay. Dinesh Shahra, MD, Ruchi Soya Industries, whose Ruchi Gold is India's largest single oil brand, said the landed price of refined palmolein would be cheaper than locally produced palmolein .
"This would gradually lay idle the domestic industry's refined capacity which had been doubled to 12 mt a year, which in turn could increase the pricing power of exporters on the back of shortages at home (since CPO refining would slow down significantly ). Finally, the common man would have to pay more for edible oil. We hope the government addresses industry concerns ," Shahra said. He was speaking on the sidelines of the Globoil conference in Mumbai.
Source : economictimes.indiatimes.com
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