Govt urged to cut duty on crude palm oil

New Delhi, Nov 18 | Updated: Nov 19 2005, 05:30am hrs
Phdcci has urged the government to reduce the duty on crude palm oil (CPO) to 20% on actual user base. CPO is imported by the domestic vanaspati industry and as the present government policy allows duty free imports of vanaspati from neighbouring countries, the domestic industry is on the brink of closure.

In its pre-Budget memorandum submitted to the finance ministry, Phdcci has underlined that reduction of duty on CPO would lower the tax disparity between the domestic manufacturers and the manufacturers in the exporting companies by approximately Rs 10,900 per tonne.

It would also reduce the potential of countries from undercutting their brand to sell in India.

All other things being equal, these countries have the dual advantage of using their own raw material, available at a lower price and nil duty as compared to their counterparts in India, who are not only forced to pay higher price but also a whopping duty of 81.6%.