| Date: |
27-12-2014 |
| Subject: |
Solvent extractors demand higher import duty on edible oils |
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MUMBAI: The Solvent Extractors' Association of India (SEAI) today welcomed the government's decision to hike the import duty on edible oil by five per cent, and urged the government to provide more relief to the sector.
"We welcome the government decision to partially accept our request to raise import duty on raw oil from 2.5 per cent to 7.5 per cent and refined oil from 10 per cent to 15 per cent, as against the industry's demand for 10 per cent on raw oil and 25 per cent on refined oil," SEAI President Pravin Lunkad said in a statement issued here.
Revision of import duty by merely five per cent is very meagre to support farmers to realise better prices, Lunkad said.
The SEAI had also requested the government to ensure a duty difference of 15 per cent between raw and refined oil so that value addition and capacity utilisation takes place in the country, he said.
"Although, duty has increased, the difference of 7.5 per cent remains unchanged. We appeal to the government to ensure that a 15 per cent duty difference is maintained between raw and refined oils to support domestic vegetable oil refiners," he said.
This would also ensure that government revenue increases from the current level of around Rs 1,500 crore (2.5 per cent on import value of Rs 60,000 crore) to more than Rs 5,000 crore annually, he said.
Source : economictimes.indiatimes.com
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