Decision to increase import duty on edible oils welcomed by indigenous industry

16-Sep-2024 05:37 PM

Mumbai. The indigenous vegetable oil industry has welcomed the 20 percent increase in import duty on special oils of crude and refined category by the Central Government and said that this will help in ensuring higher prices for oilseed producers.

This decision of the government is likely to strengthen the prices of oilseeds. It is also likely to affect the future prices of palm oil and soybean oil in the international market and especially in Kuala Lumpur's BMD Exchange and Chicago Exchange.

The import of refined palm oil and soybean oil in India through Nepal has started gaining momentum again.

It has often been seen that when the difference in duty between crude and refined edible oils increases in India, then its import through Nepal starts gaining momentum because under the SAFTA treaty, there is no customs duty in India on imports from Nepal.

Earlier, when the difference in duty was increased, edible oils started being imported in large quantities from Nepal and in limited quantities from Bangladesh.

It is understood that discussions have started between many importers of India and exporters/businessmen of Nepal regarding this, which is expected to increase the import of refined edible oils in India. The Indian edible oil industry may face a lot of problems due to this.

It is heard that Indian importers have started importing edible oil through Nepal. There is also news that deals of tins of palm oil and soya oil directly from Nepal have also started.

Swadeshi refiners say that the government should try to control the refined edible oils coming through Nepal.