21/11/05 NEW DELHI, (Asia Pulse)  - Pointing that duty free imports of vanaspati were hitting the domestic industry hard, PHDCCI on Friday asked the Government to reduce the import duty on crude palm oil to 20 per cent from current 81.9 per cent.

In a pre-budget memorandum submitted to the Finance Ministry, the Punjab and Haryana, Delhi Chamber of Commerce and Industry said such a measure would lower the tax disparity between the respective manufacturers in the two countries by approximately Rs 10,900 (US$238) per tonne.
 

It would also reduce the potential of neighbouring countries from undercutting their brand to sell in India, a Chamber release said adding that the policy of allowing duty free imports of vansapati from neighbouring countries was pushing the sector on the brink of closure.

Imports are increasing at a rapid pace as manufacturers are taking advantage of lower customs duty of 30 per cent.

This has given a cost and competitive margin of over Rs 7,500 per tonne to the importer, the body said adding that such a skewed operational environment had crippled the domestic vansapati sector.

(PTI)