India to start rice bran import from neighbouring countries on duty relief

India will soon start import of rice bran for processing and producing its oil following rationalization in customs duty by the government to “nil” from 15% earlier.

 

Rice bran oil is considered as the healthiest edible oil available in India. While announcing the Budget, the Union Finance Minister Arun Jaitley on Thursday exempted rice bran from import duty to flourish domestic processing units. 

 

Edible oil processing industry in India has a built capacity to produce 1.4 million tonnes of rice bran oil every year of which only 65% is utilized. Owing to lower availability of rice bran from local sources, processing units’ operating capacity was underutilized. Since, the government had levied 15% ofimport duty, import of bran for processing and selling at competitive price was not viable.“Therefore, we had urged the government to exempt rice bran from import duty which was honoured. Now,the industry will be able to import rice bran for processing locally. The business will be viable now,” said B V Mehta, executive director, Solvent Extractors’ Association (SEA).

 

Now, India will be able to import rice bran from neighbouring countries including Sri Lanka, Bangladesh and Myanmar. Looking at the El Nino threat and likely negative impact on oilseed production, the import duty exemptionon rice bran will raise oil availability from domestic sources, albeit marginally. Also "The Association" had represented to the Government that in the wake of threat of El Nino and its likely impact on oil seed production;to allow import of oil cakes and rice bran at “nil” duty as this would provideraw material to the solvent extraction industry and the oil meals produced would meet the requirement of the feed industry. 

 

Jaitley exempted from import duty de-oiled soya extract, groundnut oil cake/oil cake meal, sunflower oilcake/oil cake meal, canola oil cake/oil cake meal, mustard oil cake/oil cakemeal, rice bran/rice bran oil cake and palm kernel cake up to December 2014.

 

Rice bran oilis rich in monounsaturated fatty acids have a higher cholesterol reducing power than other poly unsaturated fatty acids (PUFAs) rich oils due to presence of oryzanol. Rice bran oil produced from the branof paddy extracted through the physical refining process contains natural vitamin E, which is an antioxidant and helps improve neurological functioning.

 

Due to its high antioxidant content, it fights the free radicals that harm the immune system. Known as one of the 'World’s Healthiest Oil' – rice bran oil is recommended by many leading cardiologists, diabetes experts, nutritionists and health advisors world over.

 

A R Sharma, Chairman, Rice Bran Oil Promotion Council, said India is the second largest producer of rice, after China,and produces around 800,000 tonnes of rice bran oil every year. Of this, only 300,000 tonnes are used as edible oil while the rest is used by vanaspati industry or blended with other oils and sold as branded products