SEA opposes duty-free RBD palmolein imports

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Mumbai, Jun 19: The Solvent Extractors’ Association of India (SEA) has strongly opposed the government’s proposal to allow imports of refined palmolein from Sri lanka at zero duty under free trade agreement.

The custom duty rate for crude palm oil (CPO) is zero whereas custom duty for refined palmolein is 7.5%, however effective duty is just 2.8% due to freezing of tariff. If the import of RBD palmolein permitted at zero per cent duty, it will not meet the condition under free trade agreement with Sri Lanka and will have serious repercussion on domestic refining industry, SEA release said. It is in regard with the proposal made by some companies having vanaspati plants established in Sri Lanka and they have requested the government to allow import of refined palmolein from Sri Lanka at zero duty under Free Trade Agreement.

Value addition conditions of minimum 35% can not be met as there is hardly any value addition. The chances of direct buying of Refined Olein through Sri Lanka and export to India with just packing or even direct shipment also not ruled out, release said.