The Solvent Extractors Association has asked the Government to immediately increase the duty on refined palmolien by 2.5% as well as to impose 10% duty on crude palm oil and 20% duty on palmolien, to give sufficient protection to the oil seed farmers and also the domestic refining industry.
The edible oil Industry is concerned about the consequent reduction in the difference of import duty between crude palm oil (CPO) and refined palmolien to 5% as against the previously existing duty difference of 7.5%.
"It is disappointing that instead of taking cognizance of the industry’s request of maintaining 10% duty differential, as recommended by the Tariff commission, in order to protect the domestic refining industry, the Government on the contrary has actually reduced the differential duty to 5%." The release by The Solvent Extractors Association said.
The industry fears that reduction in the duty differential between refined palmolien and CPO would once again lead to large scale imports of refined palmolien thereby resulting in further underutilization of capacity of the Indian refining Industry in India.