Other States - Rajasthan   

`Palm oil imports will lead to sharp decline in demand'

Special Correspondent

Centre decision on cuts in tariff duty opposed `The Government should protect domestic oilseed cultivators'

JAIPUR: The Make Trade Fair Campaign and the Food, Trade and Nutrition Coalition-Asia have registered their protest against the Centre's recent decision to introduce cuts in the tariff duty on palm oil varieties, saying it had deepened the threat of crash in the domestic edible oil market prices and created uncertainties for the oilseed cultivators.

The two non-Government organisations, in a joint statement released here on Sunday, said the cheap palm oil imports from Malaysia and Indonesia would depress the domestic oil prices and lead to a sharp decline in the demand.

Krishna Kumar and Prakash Chhangani of the two bodies called upon the Centre to take initiative for promotion of domestic edible oil market to support lakhs of poor farmers cultivating a wide range of oilseed crops such as mustard, soyabean, and groundnut to sustain their livelihood.

The Make Trade Fair Campaign and FTN Coalition stated that the reduction of duty on palm oil to check inflation in the country was not justified as its international prices had been jacked up for various reasons, including its use as bio-fuel.

"The Government should protect the domestic oilseed cultivators and edible oil market by increasing tariffs rather than reducing it,'' they said.

The import duty on crude palm oil, crude palmolein and other fractions of palm oil has been slashed from 80 per cent to 70 per cent and on refined, bleached and deodorised palm oil from 90 per cent to 80 per cent.

The statement said the duty cut was likely to bring down prices by about Rs. 2 a kg.

The two bodies have been lobbying for fair trade rules in the national and international trade agreements and policies to safeguard the livelihood of poor, marginalised and landless farmers in the World Trade Organisation (WTO) regime.

They have made a demand for listing sensitive agricultural commodities in the special product category in order to protect domestic farmers from the import of agriculture produce, especially cheap edible oils.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Activists demand ban on soft drinks
`Palm oil imports will lead to sharp decline in demand'
RCDF goes global, sends milk and ghee to Singapore
Adolescent learning centres for dropouts

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu