SEA urges govt to not cut import duty on crude palm oil

New Delhi, Dec 27 () Edible oil industry body SEA on Friday urged the government to not reduce the import duty on crude palm oil (CPO) to 30 per cent from the existing 40 per cent as it will affect domestic oilseed growers.

The industry body also urged the government to not reduce the duty differential between CPO and refined palmolien to 7.5 per cent from existing 10 per cent in line with the ASEAN agreement, which is likely to kick in from January 1, 2020.

In a statement, the Solvent Extractors Association of India (SEA) said there are reports that the Vanaspati Industry Association has demanded a reduction in CPO import duties to 30 per cent.

"If this demand is accepted by the government it would seriously hurt the oilseed farmers without being beneficial to the industry," it said.

The National Mission of Edible Oil, which is targeting about 50 million tonne oilseed production in the country in next three to five years, would also be jeopardised, it added.

"We suggest the duty differential between CPO and refined palmolien be raised to 15 per cent or minimum 10 per cent as at present without in any way reducing duties," the SEA said.

Currently, oilseeds are selling above Minimum Support Price (MSP) which augurs well for the future of oilseed production as the right price signals are going to farmers, it added.

SEA further said, "Over the years, India has seriously compromised its edible oil security which has resulted in dependence on imports growing to almost 70 per cent."

The main reason for stagnant oilseed production has been lack of interest among oilseed farmers due to poor returns.

Palm oil shipments comprise 63 per cent of the country's total vegetable oil imports. India imported 94.09 lakh tonnes of palm oil in the 2018-19 marketing year (October-November). LUX RVK