Financial Express (04/04/2019) - In response to this, the Solvent Extractors Association of India (SEA) has sent a memorandum to the Centre, requesting the government to impose 5% cess on the import of RBD Palmolein to safeguard the interest of domestic farmers and vegetable oil refiners.
The import of palmolein has touched 300,000 tonne in March, which has dented the price of mustard seed in mandis and the revenue of domestic refiners.
In response to this, the Solvent Extractors Association of India (SEA) has sent a memorandum to the Centre, requesting the government to impose 5% cess on the import of RBD Palmolein to safeguard the interest of domestic farmers and vegetable oil refiners.
The ministry of finance, with effect from January 1, 2019, had reduced import duty on palm oil and also cut the duty difference between crude and palm oil from 10% to 5% on palmolein to be imported from Malaysia. This has resulted in a sharp increase in the import of RBD Palmolein and the volume nearly doubled to 3,00,000 tonne in March 2019 from 1,30,459 tonne in December 2018, up by 85% at the cost of reduced import of Crude Palm Oil (CPO).
This is likely to increase in coming months considering the shipments lined up from Malaysia for the export of RBD Palmolein to India. This has the potential of sounding the death knell for the palm refining industry in the country, if this aberration is not corrected.
Import of palm oil has increased over 230% during this short period, the association said. This has also seriously impacted prices of mustard seed and is being currently quoted at `700-800 per quintal, which is below minimum support price of `4,200/quintal.
According to SEA, harvesting of mustard has just begun and is having a huge negative impact on the incomes of mustard farmers. This anomaly needs to be corrected, the association stated and had urged the Centre to impose 5% cess on RBD Palmolein. The sector is also demanding to create a duty difference of 10% between crude and palm refined oil to aid survival of the Indian edible oil industry.
Read more at https://www.financialexpress.com/market/commodities/solvent-extractors-body-seeks-5-pct-cess-on-import-of-rbd-palmolein/1537335/