The Hindu Business Line : Plea to supply imported vanaspati through PDS

Advertisement

Mumbai Feb. 13 In a pre-Budget representation to the Union Finance Minister, the Kolkata-based All-India Oils and Seeds Foreign Trade Association has made a strong pitch for imposition of excise duty on refined edible oils and vanaspati stating that it will actually help the Government check rising prices while providing protection to primary producers.

The trade body has argued that imported oils will become less expensive despite levy of excise duty because refiners will avail of Modvat facility to adjust payment of 4 per cent special additional duty on imports.

Currently, special additional duty works out to approximately Rs 1,600 a tonne. If excise duty of Rs 1,000 a tonne were imposed, the net burden would be only Rs 600 a tonne.

Also, imported refined oils and vanaspati will bear countervailing duty equivalent to excise duty, providing protection to domestic producers and helping raise revenue, it said.

On the other hand, refined oils produced from indigenous sources will bear nominal excise duty that would not hurt consumers.

"A rational taxation policy for the edible oil sector will help reduce prices by at least one rupee to Rs 1.50 a kg and control inflation," Mr Raju Mansinghka, President of the association, told Business Line.

The association has urged the Food Secretary to seriously consider marketing imported vanaspati through the public distribution system, he said. Approximately, 3.5 lakh tonnes are imported into the country, much of it at zero-duty.

food business.

The trade body has also highlighted the plight of farmers as also small and medium players in the food business who are seriously affected by heavy price volatility in essential food commodities because of rampant speculation in commodity futures exchanges, and has demanded protection from the activities of large funds and multinationals in

More Stories on : Oilseeds & Edible Oil | Budget | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Spat over Rubber Board fiat to commodity bourses

Belt of torrential rain moving to East

Additional margin on potato

Potato futures hit upper circuit, pare gains

Poabs Estate bags Sustainability Award

The people's choice

Spot rubber slips further

Further upside seen in precious metals

`Farm varsities must start food tech courses'

Potato R&D: Minister seeks CPRI branch in Kolkata

Plea to supply imported vanaspati through PDS

Tobacco Board chief for FDI in processing

India tops in ground pepper supply to US

Pepper futures rebound on buying support