The Hindu : Higher import duty on refined palm oil sought

Online edition of India's National Newspaper
Tuesday, Nov 11, 2003

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Higher import duty on refined palm oil sought

By Our Special Correspondent

NEW DELHI NOV. 10. The Union Agriculture Minister, Rajnath Singh, has urged the Finance Ministry to raise the import duty on refined palm oil (RBD) from 70 per cent to 85 per cent as this year's kharif crop is expected to be a bumper one.

In a letter written to the Finance Minister, Jaswant Singh, the Agriculture Minister said harvesting of kharif crop had just begun and arrivals would pick up in the coming days.

"Edible oil prices are likely to be under heavy selling pressure and farmers may not get remunerative prices for their produce unless edible oil prices are maintained at current levels by reducing the import duty on edible oils," he said.

Mr. Singh said international prices of edible oil, especially palm oil, were not competitively determined but were dictated by two major suppliers, Malaysia and Indonesia.

"Our past experience also indicates that the reduction in import duty does not necessarily lead to reduction in prices as the exporters increase their prices by the corresponding quantum. Therefore, the benefit of reduction in duty does not accrue to our own domestic consumers but to traders and exporters".

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