Import of crude palm oil was the maximum in July and stood at 1.14 lakh tonnes compared to zero imports during the same month last year, according to statistics compiled by Solvent Extractors Association (SEA).

The import of 1.14 lakh tonnes in July was much higher than the monthly requirements of the vanaspati manufacturing units, industry officials said. SEA said the shift had come in the wake of Government's decision to increase the import duty on refined edible oils. The duty has been raised by 27.5 per cent to 44 per cent on refined edible oils while it is 27.5 per cent on crude oil.

Government had increased the customs duty on imports of refined and crude oils to restrict a growth in imports. But the hike in duty had failed to check imports as a fall in international prices marginalised the duty increase. Moreover, apart from the shift to crude oil import, the duty hike has not had any significant impact on imports. After a small dip in June, imports for July rose again. Import of edible oils for July this year was 4.14 lakh tonnes, against 3.47 lakh tonnes in June, SEA said. Imports of crude palm oil has increased from 29 per cent in January 2000 to 53 per cent in July, while the share of refined palmolien fell by 71 per cent in January to 47 per cent in July this year.

In 1998-99 the ratio of imports of refined palmolien to crude oil imports was 70:30, which has now tilted in favour of crude oil from month to month. The ratio for the first nine months was 57:43. Imports of RBD palmolien was almost same as last year at 16.75 lakh tonnes during the first nine months of this year as against 16.26 lakh tonnes last year. The total edible oil imports too were almost at the same level as last year at 29.95 lakh tonnes.Industry officials said despite increase in the duty, imports were likely to remain at the same level as last year. The industry has been demanding for a further revision of the import duty structure. It is asking for an effective import duty of 60-80 per cent on refined oils and 38.5 per cent on crude oils.

Ministry of consumer cffairs and cublic distribution had earlier said that it was looking at the possibilities of revising the duty structure and would consider a hike after looking at the likely oilseed scenario in the coming year.