7/22/04 (Oilmandi) - KOLKATA-based All-India Oils and Seeds Foreign TradeAssociation has urged the Government not to change the specificationrelating to carotenoid value for the palm group of oils and has suggesteduniform rate of customs duty be levied on all types of palm oil.

Drawing technical support from the literature of Codex Alimentarius, theinternational alliance that prescribes food quality standards, theassociation has said that in addition to carotenoid value, odour and tasteshould be considered while distinguishing crude and refined oils.

At present, customs duty on crude oils of the palm group is 65 per cent(subject to carotenoid value condition) and for others 75 per cent. Forcrude palm to attract 65 per cent duty, the carotenoid content should benot less than 500 parts per million (ppm).

The stipulation was imposed in August 2003 in order to prevent degradedversions of oils coming in to take advantage of lower duty. Most of theconsignments of crude palm oil and crude palmolein show values of lessthan 500 ppm, making them ineligible for lower rate of duty.

Last week, a group of large importers camped in New Delhi to lobby theGovernment for change in the carotenoid specification.