NEW DELHI, Sept 11 (Asia Pulse) - The federal Agriculture Ministry is notin favour of the proposal made by Indian Prime Minister Atal BihariVajpayee and the federal Food Ministry for reduction of duty on palm oilimports saying it would harm the interests of the oilseed growers. It hasinstead recommended increasing the levy to over 200 per cent."In line with the PM's assurance during his trip to Malaysia and demand ofthe vanaspati industry, a cabinet note was prepared for duty reduction onpalm oil by the Food Ministry, but the Agriculture Ministry has foughtagainst it tooth and nail," official sources told PTI.They said when the Food ministry's note was circulated for comments to theFinance, Commerce and Agriculture Ministries, it was the latter which putits foot down.In their comments on the note, the Agriculture Ministry recommended anincrease in import duty on palm oils to over 200 per cent from the present75 per cent and 85 per cent on crude palm oil and RBD Palmoleinrespectively.Arguing their case the Agriculture ministry said at a time when a goodkharif oilseeds crop was due and efforts were being made to increase thearea under their production, a cut in duty would be a retrograde step.They said it would inevitably result in farmers getting unremunerativeprices for their crop, fall in acreage and oilseeds production leading tomore imports.They argued that cheap imports ensured that the inflow was much in excessof needs, spoiling the entire oil economy.With the agriculture ministry adamant on the matter, Finance Ministry--thedeciding authority-- would run the risk of antagonising one party toplacate another if it went ahead with reduction in duty, source added.