NEW DELHI, June 25 Asia Pulse - The edible oil industry today demandednegotiations at WTO for increasing the bound rate on soya oil to 45 percent and exclusion of the sector from free (FTAs) and preferential tradeagreements with other countries.

The WTO bound rate is the ceiling over which members cannot levy importduty on an item. While it is 45 per cent for soya oil, the bound rate onother edible oils is 300 per cent placing other oils like palm at adisadvantage.

"The extremely low bound duty rate of 45 per cent on soya oil practicallynullifies higher duty rates on other imported edible oils," CentralOrganisation for Oil Industry and Trade (COOIT) President Devi PrasadKhandelia said here.

In a representation to the Commerce Minister Kamal Nath, he also demandedexcluding edible oils from FTAs and PTAs and in case this is not feasiblethen imposing of a minimum 45 per cent value addition clause on any edibleoil which is imported duty free under such agreements.

He said this was essential to safeguard the domestic manufacturers whichhave already suffered due to cheap import of vanaspati from Nepal beforethe treaty with the Himalayan kingdom was renegotiated.

Concerns are also being expressed over vanaspati units coming up in SriLanka after it was included as an item to be import duty free under a FTAwith the island nation.

Raising apprehensions over the increasing imports, the apex industry bodysaid "utmost caution is required with regard to our dependence on importededible oils which at present amount to about 50 per cent of therequirements".

(PTI)