Food Minister K V Thomas today said the Government has no immediate plans to hike import duty on edible oils even as the industry has expressed concern over cheap imports of vegetable oil affecting oilseeds farmers.
India, the world’s largest edible oil importer, has zero import tariff on crude oil and 7.5 per cent on refined oil.
Last week, industry body Solvent Extractors’ Association of India (SEA) in its representation to Finance, Commerce and Food Ministries had sought increase in import duty to 20 per cent on refined vegetable oil and 10 per cent on crude.
“I don’t have any proposal as of now to increase import duty on edible oil,” Thomas told reporters when asked if the ministry has any plans to change the import tariff structure.
Earlier, SEA had said that import of vegetable oil at lower price has hit domestic oilseeds prices. For instance, soyabean prices have fallen sharply from Rs 4,800 that ruled during sowing period to Rs 3,300 per quintal at the time of harvesting now and farmers are worried about the price they might get for mustard seed, which is being sown currently.
Also, oil palm trees are also being uprooted due to lower realisation on Fresh Fruit Bunches of oil palm tree caused due to cheaper imported CPO, the Association had said.
The hike in import tariff would not impact majority of consumers or cause inflation because prices are at present are lower by nearly 15 per cent from the high witnessed six months back, the SEA had said, adding increase in duty would fetch Government revenue of Rs 4,000-5,000 crore.
The country’s total vegetable oil imports crossed a record 10 million tonnes in 2011-12 on account of sluggish global prices following huge surplus stocks in Malaysia and Indonesia.
As per industry data, average cost, insurance and freight (CIF) price of crude plam oil has come down by 33 per cent to Rs 1,184 per tonne, while refine palm to $ 840 a tonne in last six months.