Vanaspati industry petitions govt against any duty on CPO

New Delhi, Dec 28 (PTI) Apprehensive of re-imposition ofduty on crude palm oil, vanaspati manufacturers have asked thegovernment to desist from such a move as it could lead tohigher prices of cooking oil. In a joint memorandum to Prime Minister Manmohan Singh,Vanaspati Manufacturers Association (VMA) and Indian VanaspatiProducers Association (IVPA) said that since prices of majoroilseeds are ruling above their minimum support prices, thesituation does not warrant any hike in custom duty on crudepalm oil, a major raw material in vanaspati making. The Centre in April had reduced import duty on refinedoils to 7.5 per cent and abolished customs duty on crudeedible oils. But recently it imposed 20 per cent duty on crudesoyabean oil while crude palm oil was not touched. Mumbai-based Solvent Extractors Association last week metCommerce Minister Kamal Nath to demand imposition of customsduty on crude palm oil. The vanaspati producers said groundnut seed is ruling atRs 2,250 a quintal in Saurashtra in Gujarat, a major growingregion, against its MSP of Rs 2,100 a quintal, while soyabeanprice is at Rs 1,800 a quintal compared to its MSP of Rs 1,390a quintal. Crude palm oil and other palm group of oils constituteabout 85 per cent of India' & chr(39) & 's import basket as the country buysover 63 lakh tonnes of vegetable oils in a year. The vanaspati makers alleged that a section of theindustry is demanding imposition of duty on crude palm oil "tomake speculative profits in the stocks of soyabean seeds andgroundnut shells hoarded by them." They fear that re-imposition of duty would open floodgates for cheaper vanaspati from Sri Lanka and Nepal, whichmay adversely affect the domestic manufacturers. Vanaspati producers said groundnut oil prices havedeclined to Rs 61 per kg from Rs 65 a kg in 2007 in wholesalemarket while soyabean oil prices have come down to Rs 42.50 akg from Rs 46.80. But rates of mustard oil and sesame (til)oil have increased in last one year. The wholesale price of mustard oil is Rs 61.50 a kgcompared to Rs 52.80 a kg last year and that of sesame oil isRs 74 a kg from Rs 54 a kg, they said. "The overall prices of edible oils are somewhat atreasonable levels due to the affordable prices of RBDPalmolein," the memorandum said, and added that retail pricesof cooking oil vary between Rs 60 and Rs 125 per kg. PTI