The Oil Palm Developers and Processors Association (OPDPA) has welcomed the Centre’s decision to increase import duty by 14 percentage points each on crude palm oil and RBD (Refined, Bleached and Deodorised) palmolein.
This is the third hike in the last six months. The move would benefit oil palm farmers as it would get them better realisation.
As a result of the hikes, the price per ton of fresh fruit bunches supplied by the farmers has gone up from ₹6,781 per ton in July 2017 to around ₹9,000.
The government last week decided to increase the duty on crude palm oil to 44 per cent from 30 per cent. On the RBD palmolein, the duty has been hiked to 54 per cent from 40 per cent.
“The net effective duty on crude palm oil after social welfare surcharge is 48.4 per cent and the same on RBD palm olein, it will be 59.40 per cent,” the association has said.
Sanjay Goenka, President of OPDPA, said that the move would help farmers earn higher returns on their produce. “This has translated to a net increase of 33 per cent in the take home income for the farmers. We hope that the government will continue their progressive outlook towards indigenisation of oil palm and announce a fixed MSP for the benefit of the farmers,” he said here in a statement on Monday.
The OPDPA is a consortium of companies that include 3F Oil Palm Agrotech, Godrej Agrovet, and Ruchi Soya Industries.