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Edible Oil: To save domestic refiners, the Association of Edible Oil Industries (SEA) on Monday demanded the Center to increase the import duty on RBD Palmolein from 12.5 percent to 20 percent. The organization says that this will reduce cheap imports and encourage domestic refiners. Solvent Extractors Association (SEA) President Ajay Jhunjhunwala gave a circular to Union Food Secretary Sanjeev Chopra and said that the import duty difference between RBD palmolein and crude palm oil (CPO) should be increased to at least 15 per cent. Keeping this duty differential at 7.5 per cent is a boon for the refiners of Indonesia and Malaysia.
He said it is cheaper to import RBD palmolein as the tax imposed by Indonesia on RBD palmolein is $60 per tonne less than that of crude palm oil (CPO). Because of this, the import of RBD Palmolein has increased rapidly in the last two months. He said that about four lakh tonnes of palmolein has been transported in the country due to which the capacity of the domestic industry is not being utilised.
Referring to the impact on the domestic industry due to increased import of refined palm oil, Jhunjhunwala said that without any change in crude palm oil duty, the import duty on RBD palmolein can be increased from the current 12.5 percent to 20 percent to widen the duty gap. .
Palmolein import will be less
Jhunjhunwala said that due to 15 percent difference in import duty, palmolein import will decrease and in its place the import of CPO will increase. He said that this will not affect the total imports and inflation will not increase. At the same time, along with employment in the country, the consumption of edible oil will also be fulfilled.
140.3 lakh tonnes were imported in the last financial year
SEA also said that domestic refiners are badly hit with very low capacity utilization and are becoming mere packers, affecting huge investments made in the sector. India is dependent on imports for its edible oil requirements. In the year 2021-22 (November-October), imports had increased from 131.3 lakh tonnes in the previous year to 140.3 lakh tonnes.
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