02.12.2019 (International-Cogencis) - NEW DELHI – The government may allow import of refined edible oils in 5-kg consumer packs, a source close to the development said today.

"The commerce ministry has received a proposal from trade bodies to allow import of 5-kg consumer packs to reduce imports of RBD (refined, bleached and deodorised) palm oil in the country," the source said.

Currently, refined palm oil is the only item that is imported in the refined edible oil basket.  

It would be easier for the government to guage the quantum of refined edible oil import by allowing 5-kg packs, the source said.

This will make the import of refined edible oil costlier and uncompetitive for Indian buyers, Solvent Extractors' Association President B.V. Mehta said.

The certification on origin on consumer pack of 5-kg edible oil will also put a check on duty-free imports from neighbouring South Asian Free Trade Area nations, the source said.  

A substantial quantity of refined palm oil is routed from Malaysia and Indonesia, the top palm oil producers, to India through these Asian countries which are members of SAFTA and enjoy preferential duties, he said.

Around 30,000 tn of refined edible oil is imported from these countries to India through road or sea routes, he said.

The government is also mulling over imposing quantitative restriction on refined edible oil imports by removing it from the free category and putting it in the restricted one.

The government had raised import duty on refined palm oil coming from Malaysia in September to curb imports.

The Centre had launched national mission for vegetable oil to ramp up domestic oilseed and edible oil production and reduce edible oil annual import bill of around 750 bln rupees, he said.

India is the largest importer of edible oil and buys around 15 mln tn annually, of which 8-9 mln tn is palm oil.  End

Edited by Akul Nishant Akhoury