New Delhi: The government on Wednesday announced a cut in import duty on refined palmolein from 50 per cent to 45 per cent and on crude palm oil to 37.5 per cent from 40 per cent with immediate effect.
A notification by the finance ministry stated that The duty cut has been made under the ASEAN agreement and the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA).
The Solvent Extractors’ Association of India (SEA) said that this will have a serious impact on domestic palm oil refining industry and oilseeds farmers.
It argued that the reduction in tax difference between CPO and refined palmolein from 10 per cent to 7.5 per cent could encourage the import of refined palmolien.
The country’s edible oil imports are now touching 70 per cent of the consumption. The duty cut would be counterproductive and contrary to the government’s stated objective of increasing domestic oilseed production, th association said.