SEA wants Center to ban import of refined palm oil to save local businesses
– World Affairs SRS
In December 2021, the government reduced import duty on RBD palmolein and RBD palm oil by 5.5 per cent to check the prices of edible oils in the domestic market.
With this reduction, the import duty gap between refined palm oil and crude palm oil (CPO) has come down to 5.5 per cent.
Generally India, a major importer of edible oils, largely buys CPO from the global market and refines it in the domestic market. But due to narrowing of duty difference between the two oils, traders are turning to refined palm oil.
In a letter to Union Food Secretary Sudhanshu Pandey, Mumbai-based Solvent Extractors Association of India (SEA) President Atul Chaturvedi said: “We strongly appeal to the government to restore the duty differential of 11 per cent between crude and refined palm oil. As it was. Reduction in agriculture cess on CPO by 5 per cent as prevailing before December 20, 2021. This will ensure a gap of 11 per cent in import duty between CPO and refined palm oils.
They also demanded that the government reinstate the import of RBD palmolein and refined palm oil under the banned list with immediate effect or at least from April 1, 2022.
“This will provide an equal opportunity to the domestic refining industry and will be in line with our Prime Minister’s vision of Make in India,” he said.
Chaturvedi said the difference in duty between CPO (raw material) and refined palm oil (finished product, which was earlier 11 per cent and has now been reduced to 5.5 per cent) has the potential to destroy the CPO refining industry in the country.
In addition, buyers are turning to refined palm oil as exporting countries such as Indonesia and Malaysia impose higher taxes on CPO shipments than refined palm oil.
Chaturvedi also said, “We fear that CPO imports in our country will now be replaced by refined palmolein and our palm refining industry will be left with ‘packers’ seriously compromising on the huge investments made in the industry.”
This situation needs to be rectified before investments turn sour and add to the non-performing assets (NPAs) of the lenders, he said, adding that the current reduction in duty differentials is a big deal not only for the domestic palm oil refining industry but also for oilseed farmers. It’s a blow. as well.
After a long time, domestic oilseeds have started selling above the minimum support price (MSP) and farm incomes have improved. He said the move would be counterproductive and contrary to the stated objective of increasing domestic oilseeds production.
In January 2020, the government had placed RBD palmolein on the ‘restricted list’ of import items. However, it was later removed from the list to boost domestic supply and check retail prices. Now, its import has been allowed till December 2022.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
</div><div style="background: #fee8dd; padding: 12px; border: dashed 1px black; margin-bottom: 20px;">
Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback to improve our offering has only strengthened our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and sharp comments on relevant relevant issues.
However, we have a request.
As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.
support quality journalism and Subscribe to Business Standard,
this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by Rojgar samachar team members.