New Delhi, November 21 (Language) Edible oil industry body SEA has demanded the government to increase the duty difference between crude and refined palm oil from 7.5 percent to 15 percent to protect the domestic industry.
Solvent Extractors Association of India (SEA) President Ajay Jhunjhunwala, in a letter to the organization’s members, said the Indian vegetable oil (combining edible and non-edible oils) refining industry is currently facing challenges.
“With a size of Rs 3 lakh crore, the Indian edible oil industry is of great importance,” he said in the statement. Over the past 12 years, Indonesia and Malaysia have imposed higher export taxes on crude palm oil (CPO) than on refined oil. Due to this, refined oil has become cheaper due to which Indian refining capacity has become useless.
Jhunjhunwala said the duty differential between CPO and refined palm oil in India has been reduced to 7.5 per cent, which suits the interests of the refining industry in Malaysia and Indonesia.
He said that the reduction in duty difference between the two oils is having a negative impact on the domestic vegetable oil refining industry. In such a situation, the government should once again increase the duty difference between crude and refined palm oil from 7.5 percent to 15 percent.
The SEA Chairman said that India imported 167.1 lakh tonnes of vegetable oils in the oil marketing season of November, 2022- October, 2023, which is its all-time high. Import of edible oils reached a record high of 164.7 lakh tonnes.
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