India scraps import duty on crude soyaoil

New Delhi, Mar 19 (PTI) The government has scrapped the20 per cent import duty on crude soyaoil, four months afterimposing the tax to prevent the dumping of cheap products fromoverseas markets. "It has already been declared... notified to zero duty,"Commerce Secretary G K Pillai said here today when asked aboutrolling back the duty on the import of crude soyaoil. The government had, on November 18 last year, slapped theimport levy only on crude soyaoil while leaving the dutystructure of other varieties of edible oils unchanged. As part of the measures to control inflation, the Centrehad, on March 31 last year, abolished import duties on crudeedible oils and reduced significantly customs duties onrefined edible oils at 7.5 per cent. Expressing disappointment over the decision, SolventExtractors' & chr(39) & ' Association (SEA) Executive Director told PTI, "Weare waiting for the notification. However, the decision issurprising because prices of crude soyaoil are still rulinglow. The move will upset farmers, who will be deprived ofremunerative prices." India, the largest buyer of vegetables oils in the worldafter China, has imported 29.51 lakh tonnes between November2008 and February this year, compared with 17.61 lakh tonnesin the year-ago period, according to the latest data compiledby Mumbai-based SEA. The retail prices of soyaoil may decline by 10-15 percent if duty on crude soyaoil is scrapped, Adani Wilmer ChiefExecutive Atul Chaturvedi said. The largest-selling Adani-owned Fortune brand soyabeanoil is priced at Rs 53-54 a litre in the retail market inDelhi. According to an industry estimate, crude soyaoil hasbecome cheaper by 503 dollars a tonne in the global marketssince August last year. The slump in prices has prompted traders to import ona large scale of 2.02 lakh tonnes of soyaoil since November,compared with nil in the year-ago period. PTI