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The Oil Palm Developers and Processors Association (OPDPA), an association of oil palm firms, has welcomed the Union government move to increase the import duties on palm oil. The government raised import duty on crude palm oil to 15 per cent from current 7.5 per cent and on refined palm oil to 25 per cent from the current 15 per cent.
“ The impact of increase on crude Palm Oil alone translates to around Rs.40-60 crore extra in the hands of the farmer,” OPDPA President Sanjay Goenka has said.
“The move by government brings in a strong sense of self-sufficiency to the oil palm ecosystem. The price paid to the farmer is based on the realisation that palm oil fetches in the market. Increase in import duty helps in increase of price of palm products, thereby resulting in higher price of the produce to the farmers,” he said here in a statement on Friday.
The industry for long is asking the government to help promote domestic production by offering incentives to farmers. In order to incentivise the farmers, it wanted some protection from imports.
The duty hike would help farmers to get remunerative price for their produce and help the domestic processing industry remain self-sufficient, he felt.
Price fluctuations
He wanted the government to take measures to insulate the farmers from price fluctuations. “While this development (increase in import duties) is extremely positive and addresses some of the challenges, there is a need to ensure that the farmer is protected from price fluctuations. A price stability mechanism is required to keep farmer’s price remunerative at all times,” he felt.
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