Edible oil import duty hike ruled out

NEW DELHI, FEB 16: The government today ruled out any increase in the import duty on edible oils, saying the existing duty has kept domestic prices at comfortable levels.

8220;As of now, there is no need for any change in the import duty,8221; minister for food and consumer affairs Surjit Singh Barnala told reporters here. Barnala said it was comforting to see that prices of some of the oils which had shown an extraordinary rise a few months back had declined substantially.8220;Prices of some edible oils had shown an extraordinary rise over the last year8217;s level a few months ago. But, it is comforting to see that they have declined substantially and are only slightly higher over the last year8217;s prices,8221; he said inaugurating a seminar on edible oil packaging. The domestic edible oil industry led by the Central Organisation for Oil Industry and Trade COOIT had recently demanded hike in the import duty on refined oils to 35 per cent and that of crude oil to 25 per cent from the existing 15 per cent.

COOIT hadstated that expectation of a bumper rabi crop and largescale imports of both palmolein and soft oils were keeping domestic prices of edible oils under pressure and imports needed to be curbed. Imports of edible oils during the first two months of the current oil year November-October had been estimated by COOIT at 5.5 lakh tonnes.The differences among various sections of the industry have also forced the government not to take a serious view of the demand for upward revision of the duty, secretary, sugar and edible oils R P Sinha said. 8220;So far we have not sent any proposal for duty hike to the finance ministry. Moreover, there are conflicting views among different sections of the industry over the duty structure,8221; he said.

Barnala said in view of the fluctuations in edible oil prices, government had to take long-term measures.