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November 21, 2000 		Feedback  
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Govt hikes import duty on edible oils

The government on Tuesday hiked the import duty on edible oils by up to a hefty 30 per cent to check flooding of imported cooking medium into the country.

The increase in duty was maximum 30 per cent in case of RBD palmolein oil, followed by 20 per cent in case palm oil (for industrial use other than manufacturer of vanaspati) both edible and that for manufacture of vanaspati, an official release said.

With this, the government met the strong demand from the domestic industry which was complaining of dumping of cheaper imports.

As per a government notification, import duty on groundnut, sunflower, rapeseed, soyabean and mustard oils was increased by 10 per cent each to 45 per cent.

Likewise crude edible oils-- groundnut, soyabean, sunflower, rapeseed and mustard-- was also hiked by 10 per cent each to 35 per cent, it said, adding that these would be exempted from both surcharge and special additional duty.

However, refined oil would be subjected to 4 per cent SAD even though there would be no surcharge on their import.

The duty on crude palm oil for vanaspati manufacturing was stepped up from 15 per cent to 25 per cent, while for that used for other purposes was increased to 55 per cent from prevailing 35 per cent.

While government hiked import duty on crude oils, not mentioned hitherto, from 25 per cent to 35 per cent, levy on other edible oil remained unchanged at 45 per cent.

As a result of the changes, both RBD palmolein and palm oil under edible category would now attract import duty of 65 per cent each.

Justifying the increase, government said that "domestic edible oil industry has been expressing concern about the sharp fall in international prices of edible oils in recent months."

Consequently, industry had warned of spurt in imports, an official release said, adding that "on consideration of all aspects of the matter, it has been decided to bring about the changes in the import duty."

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