Agri Business

SOPA asks govt to maintain existing duty structure on soyoil

A J Vinayak Mangaluru | Updated on December 05, 2020 Published on December 05, 2020

India has become the largest importer of edible oils in the world, claims trade body iStock   -  branex

The Soybean Processors Association of India (SOPA) has urged the Government to maintain the existing duty structure on soybean oil and sunflower seed oil.

In a letter to Piyush Goyal, Union Minister for Commerce and Industry, Davish Jain, Chairman of SOPA, said that the countries exporting edible oil always take advantage of India’s position as the second largest importer. The reduction in customs duty in India is, most of the time, negated by either an increase in edible oil price by the exporters or by a levy of export tax by the government in the exporting country, he said.

Giving the instance of the Government’s move to reduce customs duty on crude palm oil (CPO) on November 26, he said Indonesia, the largest exporter of CPO, has increased the export tax by $30 per tonne. In the process, part of the benefit of duty reduction has gone to the Indonesian government, he said.

Stating that the Government will be losing revenue without any substantial benefit to the consumers, he said any reduction in customs duty sends a negative signal to the oilseed farmers.

“We would earnestly request the government to maintain the existing duty structure on soybean oil and sunflower seed oil in the interest of Indian oilseed farmers,” he said in the letter.

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Published on December 05, 2020
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