NEW DELHI: The Indian government today placed restrictions on refined palm oil imports to protect domestic refiners.
The curbs on RBD palm olein (the refined, bleached and deodorised form of palm oil) were announced in a notification by the Ministry of Commerce.
Mumbai-based trade group Solvent Extractors’ Association (SEA) of India had earlier sought government measures to support domestic oilseed crushers against cheaper refined palm oil imports.
“India should only be importing crude palm oil (CPO) to allow better utilisation of the domestic refining capacity. It’s a step in the right direction,” SEA president Atul Chaturvedi told Bernama.
India relies on imports for 70% of its edible oil requirements, and palm oil from Indonesia and Malaysia constitute almost two-thirds of the country’s annual vegetable oil imports of 15 million tonnes.
The Indian government effective January has reduced import duty on CPO to 37.5% from 40% and on refined palm oil to 45% from 50%.
Local refiners had asked for a higher duty differential between CPO and refined products.
The restrictions on RBD palm olein came amid higher consumer edible oil prices.
Prices have risen in the last few months despite increased oilseed output and higher edible oil imports, Consumer Affairs Minister Ram Vilas Paswan said.
“It shows that hoarders are creating artificial scarcity for speculation. We are serious and going to take necessary action,” he said in a tweet on Tuesday.
The Indian rupee’s depreciation has also contributed to costlier imports of edible oils. – Jan 8, 2020 Bernama
