The Hindu Business Line : Extractors body seeks duty imposition on edible oils

Chennai, Oct 16 The Solvent Extractors Association of India has urged the Centre to impose at least 30 per cent duty on crude palm oil and 37.5 per cent on RBD palmolein and 20 per cent on crude soyabean oil from the current level of zero duty on crude oils and 7.5 per cent duty on refined oils.

In a memorandum to the Union Agriculture and Food Minister, Mr Sharad Pawar, the Finance Minister, Mr P. Chidambaram, and the Commerce Minister, Mr Kamal Nath, the association has also sought the lifting of the ban on export of edible oils.

“Considering the drop in price (in the global markets) and rupee depreciation in last three months, we strongly recommend to the Government to revisit the import duty structure and help raise the price of edible oil to near October 2006 levels,” said Mr Ashok Sethia, President of the Association.

DECLINING PRICES

Expressing concern over sharp decline in edible oil prices by between Rs 8,000 and Rs 20,000 a tonne, Mr Sethia said in the memorandum that with arrivals of kharif oilseed crops rates of soyabean and groundnut could drop to the minimum support price levels or even lower.

The Centre should come up with measures to arrest the fall in prices and improve the marketability of crops during heavy arrivals.

Stating that landed prices of imported vegetable oils were lower than the rates that prevailed during 2006, Mr Sethia said tumbling global financial markets, higher oilseeds production and stock of palm oil besides declining crude prices resulted in the global edible oil markets crashing.

‘REMOVE STOCK LIMITS’

Besides revisiting import duty and lifting ban on exports, the association called for removing the stock limits in States such as Maharashtra, Andhra Pradesh and Karnataka. “This could help the industry to buy oilseeds and support the farmers,” Mr Sethia said.

TARIFF VALUE

He also sought the removal of the ban on futures trading in soyabean oil, market intervention operations by the National Agricultural Cooperative Marketing Federation and aligning the tariff value of vegetable oils to the current market prices.

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