Financial Daily from THE HINDU group of publications
Tuesday, Jun 15, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jun 15, 2004 |
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Agri-Biz & Commodities
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Oilseeds & Edible Oil Industry & Economy - Excise and Customs IVOPA seeks 85 pc duty on palmolein Our Bureau
New Delhi , June 14 THE Indian Vegetable Oil Processors Association (IVOPA) has sought an increase in Customs duty on refined palmolein from the existing 70 per cent to 85 per cent, along with the imposition of a five per cent special additional Customs duty (SACD) on refined soyabean oil. According to the IVOPA Chairman, Mr Dinesh Shahra, the fall in world edible oil prices has resulted in prices of oilseeds such as rapeseed-mustard going below even the official minimum support price. Soyabean sowing is just about to start and if prices of oilseeds remain low because of low international prices of edible oils, it will have an adverse impact on oilseeds production in the country. "We would therefore request that Customs duty on refined palm oil be raised immediately by 15 per cent and also that a SACD of five per cent be levied on refined soyabean oil. This will boost farmers' confidence in growing oilseeds," Mr Shahra said in IVOPA's pre-Budget memorandum to the Finance Minister. Significantly, the memorandum has not demanded a reduction in import duty on crude palm oil (CPO) and crude soya oil or even lowering the tariff values on these in line with the decline in international prices in recent months. Instead, the focus is more on increasing the import duty on refined oils and correcting the existing `inverted' duty structure. Currently, the Customs duty on CPO is 65 per cent, while the products derived from CPO processing - refined palmolein, palm stearin and palm fatty acid - attract rates of 70 per cent, 20 per cent and 20 per cent, respectively. Mr Shahra said that since refined palmolein constituted 73 per cent of the CPO yield, with palm stearin and palm fatty acid yields amounting to 21 per cent and five per cent, the effective duty on end-products worked out to 56.30 per cent. "Since the Customs duty on CPO was higher at 65 per cent, this results in a negative Customs duty impact of 8.70 per cent," he added.
More Stories on : Oilseeds & Edible Oil | Excise and Customs | Budget
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