SEA urges 15% duty differential between CPO and RBD Palmolein

25-Apr-2025 05:35 PM

SEA urges 15% duty differential between CPO and RBD Palmolein
★ The Solvent Extractors’ Association of India (SEA) has urged Union Minister Pralhad Joshi to increase the import duty differential between Crude Palm Oil (CPO) and Refined Bleached Deodorized (RBD) Palmolein to 15%, stating that such a move would benefit domestic refineries and help them stay competitive.
★ Currently, the duty gap between crude and refined palm oil is very narrow, which allows imported refined oil to be available at cheaper prices in the Indian market. This directly affects domestic refining units, which are already dealing with high production costs and limited profit margins.
★ Domestic refineries are unable to utilize their full production capacity. Costs are rising while international competition is pushing prices down. As a result, many small refineries are nearing closure, and employment in the sector is under threat.
★ SEA's key demands are as follows:
1. Increase the import duty gap between CPO and RBD Palmolein to 15%.
2. Give priority to the interests of domestic industry in policymaking, ensuring protection for both consumers and farmers.
3. The government should conduct regular reviews of the duty structure to maintain market stability.
★ SEA emphasized that the government must now decide whether to continue depending on cheap imports or move toward strengthening domestic production and refining to provide a long-term solution for the sector.