India has decided to put the process of bringing down duties on edible oil on the fast track to reach an early agreement with Asean for a Free Trade Agreement
"Earlier India had offered to start reducing tariffs on edible oil from 2012 but now it has agreed to begin this process immediately after the FTA enters into force," Joint Secretary in Department of Commerce P K Dash said.
Every year the duties will be brought down by 2-3 per cent, he said. This will see duties on crude palm oil coming down to 50 per cent from 80 per cent and refined palm oil to 60 per cent from 90 per cent.
The reduction will now be achieved by 2018 instead of 2022 as was originally proposed. India had earlier wanted to put palm oil in negative list but as this commodity accounts for bulk of exports by Malaysia and Indonesia, there was resistance.
On tea and coffee, the duties will be reduced to 50 per cent from 100 per cent. On pepper too they will come down to 50 per cent from 70 per cent during the period. These items are of special interest to Vietnam.