SEA urges govt to hike duty differential on refined palm oil, palmolein imports

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Pune | Published: December 20, 2019 12:59:11 AM

Palm oil import has reduced drastically from 2,64,000 tonne in September 2019 to 1,22,000 tonne in November 2019 and also the overall import of palmolein oil has decreased, said BV Mehta, executive director, SEA.

The imposition of 5% safeguard duty has shown positive result and import of refined palmolein.

Thanking the government for imposing 5% safeguard duty on import of refined palm oil/palmolein from Malaysia with effect from September 4, 2019, the Solvent Extractors Association of India (SEA) has urged Piyush Goyal, minister of commerce & industry with a request to duty differential to 15% .

The imposition of 5% safeguard duty has shown positive result and import of refined palmolein.

Palm oil import has reduced drastically from 2,64,000 tonne in September 2019 to 1,22,000 tonne in November 2019 and also the overall import of palmolein oil has decreased, said BV Mehta, executive director, SEA.

Mehta pointed out that while this has given great relief to the domestic vegetable oil refining industry, the benefit is likely to be short-lived as Asean Free Trade Agreement would soon come into force with effect from January 1, 2020.

As per this agreement, the duty on CPO would become 37.5% and on Palmolein 45%. The duty differential of 7.5% is not sufficient for maintaining the health of Indian palm oil refiners. We urge the government to ensure that the difference is increased to 15% , he said.

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