SEA wants govt to revisit import duty on edible oils

New Delhi, Sept 21 (PTI) Amid a declining trend indomestic edible oil prices, vegetable oil industry bodySolvent Extractors Association has favoured a raise in importduty. "Domestic prices of vegetable oils have fallen in thelast two months due to a crash in the international market.We, therefore appeal to the government to revisit the importduty structure and if necessary, not hesitate to raise theduty," Solvent Extractors Association (SEA) President AshokSethia said in a statement. SEA is also to discuss the issue in its annual generalmeeting later this week. "We will discuss this issue at ourAGM on September 26. We will write to the government forreviewing import duty on edible oils to protect farmers'interests," SEA Executive Director B V Mehta said. Mehta said farmers have the right to receive a fair pricefor their produce. The expected price for oilseeds in Octoberwould be 30-40 per cent less than what prevailed during sowingperiod (June-July), he added. Ahead of harvesting of Kharif oilseeds, the rise inimport duty on edible oils would benefit farmers as they wouldget a remunerative price for their produce, Sethia said,adding that farmers would bring their produce to mandis infull swing by October 15. SEA noted, "In view of stock limit and lack of hedgingfacility due to ban on futures trading in soya oil, theindustry may not be in a position to buy and support farmers". The Centre had in April abolished customs duty on crudeedible oils and imposed 7.5 per cent duty on refined varietiesas part of several measures to check inflation. Earlier, customs duty on crude palm oil was reduced 45per cent and on refined palmolein RBD (Refined, Bleached,Deodorised) by 52.7 per cent. Duty on crude soyabean oil was40 per cent. Besides reviewing the import duty structure, SEA has alsourged the government to immediately do away with the stocklimit, allow futures trading in soya oil and also permitexport of edible oils. Prices of vegetable oils have fallen by Rs 10,000-15,000 per tonne in the last two months. Practically, prices now areat the same level as in the beginning of last year, the SEAPresident said. (PTI)