The Solvent Extractors’ Association of India, an industry body, has demanded a duty hike in crude vegetable oils to 10% from 2.5%
and in refined vegetable oils to 25% from 10%. Photo: Mint

29/09/2014 (Livemint) - India is examining an industry demand to raise import duty on edible oils, food minister Ram Vilas Paswan told reporters on Saturday, as local oilseed prices have fallen due to a surge in shipments of cheaper palm oil.

Higher import duty on vegetable oils could support local oilseed prices and accelerate crushing of oilseeds like soybean and rapeseed.

“Local oilseed prices have fallen and we are examining industry demand,” Paswan said.

The Solvent Extractors’ Association of India, an industry body, has demanded a duty hike in crude vegetable oils to 10% from 2.5% and in refined vegetable oils to 25% from 10%.

“India’s overseas purchases of edible oil in the year starting November are set to surge to a record 13 million tonnes,” an executive at key importer Ruchi Soya said, “as lower prices, rising population and higher incomes boost consumption.”