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LATEST NEWS UPDATES | Centre hikes import duty on crude, refined soft edible oils

Centre hikes import duty on crude, refined soft edible oils

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published Published on Jun 15, 2018   modified Modified on Jun 15, 2018
-The Hindu Business Line

Palm oil imports slow down in May

Bengaluru/ Ahmedabad:
The Centre has increased the import duty on crude and refined soft edible oils such as soy oil, sunflower oil and rapeseed on Thursday. Duty on crude soft edible oils has been hiked to 35 per cent and on and soft oils to 45 per cent.

Earlier, crude soy oil attracted an import duty of 30 per cent, and sunflower and rapeseed 25 per cent. Refined variants of all these three edible oils attracted 35 per cent. The latest duty hike, coinciding with the start of the kharif sowing season, is aimed at curbing cheaper imports. This, in turn, could translate into better prices for the farmers.

The Solvent Extractors Association’s efforts have yielded results, said B V Mehta, Executive Director of the apex trade body of the edible oil industry. The government has however, kept the import duty on crude and refined palm oils unchanged.

On March 1, 2018, Centre had increased import duty on Crude Palm Oil , RBD Palmolein and RBD Palm Oil. As a result, import duty on CPO increased to 44 per cent from 30 per cent (effective duty 48.4 per cent) and RBD Palmolein and Refined Palm Oil to 54 per cent (40 per cent), (effective duty 59.4 per cent. The duty hike led to a slowdown in palm oil imports in May, while the inflow of sunflower and soybean oils increased.

Data compiled by the Solvent Extractors Association of India (SEA) revealed that palm oil (including RBD Palmolein, CPO and CPKO) imports during May 2018 stood at 4.96 lakh tonnes (lt), as against 7.78 lt in April 2018, a decline of 36 per cent.

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The Hindu Business Line, 14 June, 2018, https://www.thehindubusinessline.com/news/centre-hikes-import-duty-on-crude-refined-soft-edible-oils/article24165542.ece?homepage=true


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