The Coconut Development Board has expressed concern over bulk import of palm oil, saying that this will affect prices of coconut.
The excessive import of edible oils, especially palm oil, during the peak coconut production season would definitely trigger price crash of coconut oil.
As imported edible oils enjoy tariff concession as well as subsidy, its market price at retail level is low which makes a significant dent on the marketability of coconut oil in various markets in India.
During November 2011 to May 2012, import of refined oil (RBD Palmolein) increased by 97 per cent and reported at 10,84,033 tonnes compared to 5,51,327 tonnes during the corresponding period last year.
During the same period, crude palm kernel oil import increased by 82 per cent and crude palm oil by 14 per cent.
Current year import is 64,692 tonnes while last year the import was 35,564 tonnes only, the Board said in the statement.
In order to meet vast demand and interests of farmers and processors, customs duty on crude edible oils has been reduced to zero per cent with effect from March 24, 2009.