NEW DELHI: An Indian trade group representing vegetable oil importers on Thursday slammed the government for issuing licences to import refined palm oil, saying this is not in line with the “stated objective” of last month’s order restricting RBD palmolein imports.
Referring to media reports that the Ministry of Commerce’s Directorate General of Foreign Trade (DGFT) has issued permits to import 1.1 million tonnes of RBD palmolein, the Mumbai-based Solvent Extractors’ Association (SEA) of India asked for a review of “the rationale for issuing such licences which are at variance with our country’s stated objective” of supporting local refining.
“We are dismayed at this action which has the potential of destroying palm refining industry in the country,” SEA said in a statement.
It said with a massive mustard crop ready for harvesting, refined palm oil imports will depress domestic oilseed prices and the government may be left with huge stockpiles.
India relies on imports for 70% of its edible oil requirements and palm oil, and Indonesia and Malaysia supply two-thirds of its annual imports of 15 million tonnes.
The new import licences are reportedly for RBD palmolein from Indonesia.
India imported 594,804 tonnes of palm oil in January, almost 20% less than December’s volumes. – Feb 20, 2020, Bernama
