Solvent extractors favour ‘bilateral safeguard duty’ in revised ASEAN agreement
Centre reviewing Asean pact for renewal
24/10/2023 (The Hindu Business Line) - The Solvent Extractors’ Association of India (SEA) has stressed the need for provision of “bilateral safeguard duty” in the revised ASEAN agreement.
In his monthly letter to SEA members, Association President Ajay Jhunjhunwala said the Government is currently reviewing the ASEAN agreement for renewal.
Stating that the Commerce Ministry recently held a meeting with stakeholders to discuss their views, he said: “We emphasised the need for a provision for ‘Bilateral Safeguard Duty’ in the revised ASEAN agreement, to facilitate imposition of additional duty when excessive imports harm the domestic industry.”
To ensure a level-playing field for both sides, there is a need to regulate/ restrict after the imposition of export duty, levies, and cess by the exporting countries, he said.
India’s imports had surged to 155 lakh tonnes (lt) during the first 11 months of the oil year (November 2022 to September 2023), and was expected to exceed 165-167 lt for the entire oil year. This increase of 25-27 lt was driven by the current low 5.5 per cent duty on crude palm oil, soyabean oil and sunflower oil.
Capacity not fully utilised
Stating that the influx of imports has transformed India into a prime destination for excess oil supplies, he said RBD palmolein imports constitute over 25 per cent of the total palm oil imports, significantly impacting the refining industry, which is grappling with a significant under-utilisation of installed capacity.
He said the country had received deficit rainfall in August, but the higher-than-average rainfall received in September has resulted in a cumulative normal rainfall of 94.4 per cent of the Long Period Average (LPA) for the entire country. However, this figure falls 5.6 per cent short of the expected normal levels.
He said SEA had signed a memorandum of understanding with the Palm Oil Crushing Mills’ Association of Thailand for closer cooperation in areas of common interest related to vegetable oils.