The Hindu Business Line : Tariff on vegetable oils

This is with reference to, "Tariff values on vegetable oils reduced", (Business Line, January 3). The Government cut the tariff values on vegetable oils but did not care to review the structure of non-edible oils and the classification of non-edible oils such as Jatropha Curacas oil (used for production of bio-diesel).

Non-edible oil can be imported on the payment of 65 per cent of the customs duty. The same oil is allowed for the end-users such as Godrej Soaps and Hindustan Lever, at 20 per cent import duty.

Malaysia is rich in crude palm oil that can be used in bio-diesel production but the Customs rules are not clear and are based on free fatty acids content. The Government would be well advised to frame the rules by way of issuing notification without any import duty, irrespective of free fatty acids composition; the Government can always restrict edible oils, such as palm oil or crude soya bean oil, in the use of bio-diesel production.

This will pave the way for importing duty-free non-edible oils from African and other countries, and can enhance bio-diesel production in India.

S. A. Alagarsamy

Chennai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in