Import Duty On Crude And Refined Edible Oil Increased

The Finance Ministry has raised import duty on crude and refined edible oil by 5 percentage points. The move is intended to protect the interest of farmers as there has been a fall in prices globally.

The food and agriculture ministries had asked the Finance Ministry to increase import duty on crude and refined edible oil to 7.5% and 15%, respectively.

India imports about 60% of vegetable oils (edible and non-edible oil) annually. The import volume had hit an all-time high of 11.82 million tonnes in FY2013-14, owing to an increase in demand.

Solvent Extractors' Association Executive Director B V Mehta welcomed the step. "It would have been better for the domestic processors if the duty difference between the crude and refined edible oils was kept at 10-12% as it would have resulted in capacity utilisation and value addition by the domestic refiners” he said. Indian Vanaspati Producers Association Secretary General SP Kamrah said, "Something has been done but there was need to do more. The government should consider keeping the duty difference between crude and edible cooking oil at 10%”.