Possibility of increase in import duty on palm oil and soybean oil

27-Aug-2024 12:03 PM

New Delhi. It is understood that the Union Agriculture Ministry has suggested increasing the import duty on edible oils to protect the interests of indigenous oilseed producers so that farmers can get at least the minimum support price (MSP) for their products and their enthusiasm and attraction towards its cultivation remains intact. The ministry hopes that a positive decision will be taken soon in this regard.

At present, an import duty of 5.5 percent is applicable on crude palm oil, crude degummed soybean oil and crude sunflower oil, which also includes cess. Similarly,

a customs duty of 13.75 percent is effective on refined edible oil. In the category of refined edible oil, mainly RBD palmolein is imported in India.

The government has been repeatedly urged by indigenous industry organizations and especially the Solvent Extractors Association of India (SIA) to increase the rate of customs duty on the import of edible oils, but the government has been ignoring it till now.

According to industry organizations, there is virtually zero duty on crude grade edible oils, which is a rare thing for any country.

Unless the customs duty is increased, it is difficult to motivate farmers to increase the production of oilseeds. The Central Government is expected to announce a National Oilseed Mission of Rs 6800 crore soon.

It is understood that the Food Ministry is also not against increasing the import duty on edible oils because it also wants that oilseed producers should get incentives to produce more and more.

The arrival of new goods of Kharif season oilseed crops and especially soybean and groundnut is going to start from next month, while sowing of Rabi season oilseed crops and especially mustard will start from October.