Increase Duty Difference Between Crude And Refined Palm Oil To 15%: SEA Urges Centre
Date
11/22/2023 4:11:14 AM
(MENAFN- KNN India) New Delhi, Nov 22 (KNN) The Solvent Extractors' Association of India (SEA) has appealed to the government to increase the duty difference between crude and refined palm oil to 15 per cent from 7.5 per cent to curb imports of refined cooking oil and protect domestic players.
The Edible oil industry body pointed out that Indian vegetable oil (comprising of edible and non-edible oil) refining industry is "facing challenges".
SEA President Ajay Jhunjhunwala said,“The Indian edible oil Industry, with a size of Rs 3 lakh crore (USD 35 billion), holds significant importance. Over the last 12 years, Indonesia and Malaysia have imposed higher export taxes on Crude Palm Oil (CPO) compared to refined Oil to protect their refining industry. This has made refined oil cheaper, rendering Indian capacity redundant and unutilized.”
“In India, the duty differential between CPO and refined palm oil has been reduced to 7.5 per cent, "serving the interests of the refining industry in Malaysia and Indonesia”, Jhunjhunwala said.
He pointed out that the low duty differential is negatively impacting domestic vegetable oil refining industry.
The SEA President pointed out that India's imports of vegetable oils reached an all-time high of 167.1 lakh tonnes during the recently concluded 2022-23 oil year (November-October), with edible oils shipments hitting a record high of 164.7 lakh tonnes.
"The palm oil segment accounted for almost 60 per cent of imports. The landed prices of RBD palmolein lesser than CPO due to exporting countries imposing higher export tax-cess on raw material. This situation poses a significant threat to the profitability and viability of our refining industry, with many units now functioning solely as packers," he said.
Jhunjhunwala said this scenario is undesirable as it could lead to an increase in Non-Performing Assets (NPA) for supporting banks and shareholders, along with heightened unemployment in the industry and the value chain.
The President also expressed concern over the ban on exports of deoiled ricebran.
The industry body would soon be meeting the concerned Ministers and senior officials in the coming days, hoping for a positive outcome.
(KNN Bureau)
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