SEA demands ban on import of refined palm oil, said domestic refining industry is suffering a big loss

SEA’s demand for a ban on the import of refined palm oil

Industry body Solvent Extractors Association said on Thursday that the domestic refining industry may end business due to narrowing of the import duty difference between refined and crude palm oil (CPO). It has demanded that the Center again ban the import of refined palm oil and restore the earlier duty difference of 11 per cent between the two oils. In fact, in order to improve the supply when the prices of edible oils increased, the government had reduced the import duty.

what is the whole matter

In December 2021, the government reduced the import duty on RBD palmolein and RBD palm oil by 5.5 per cent to check rising prices of edible oils in the domestic market. With this reduction, the import duty difference between refined palm oil and crude palm oil (CPO) has come down to 5.5 per cent. Generally, India, a major importer of edible oils, buys CPO on a large scale from the global market and processes it in the domestic market. But due to narrowing of duty difference between the two oils, traders are turning to refined palm oil. In a letter to Union Food Secretary Sudhanshu Pandey, Mumbai-based Solvent Extractors Association of India (SEA) President Atul Chaturvedi said, “We appeal to the government to restore the duty differential of 11 per cent between crude and refined palm oil. Huh. This will establish a difference of 11 per cent in duty between the two oils.” He also demanded that the government re-import RBD palmolein and refined palm oil under the banned list with immediate effect or at least from April 1, 2022. Keep it “This will provide an equal opportunity to the domestic refining industry and will be in line with our Prime Minister’s vision of ‘Make in India’,” he said.

RBD palmolein import increased

SEA data shows that among palm oil products, CPO imports declined by 29.59 per cent to 5.28 lakh tonnes in December, 2021 from 7.48 lakh tonnes in the year-ago period. Crude palm kernel oil (CPKO) imports also fell to 13,800 tonnes from 19,486 tonnes in the same period a year ago. However, imports of RBD palmolein increased to 24,000 tonnes in December 2021 from 900 tonnes in the same period a year ago. Among light oils, soybean oil imports increased by 21.57 per cent to 3.92 lakh tonnes in December last year from 3.22 lakh tonnes in December, 2020.