19/03/2009 (The Hindu, Business Line), New Delhi - The Government has done away with the 20 per cent customs duty on crude soyabean oil imports in order to keep it on par with imported palm oil that is currently allowed duty free.

The move to scrap import duty on crude soyabean oil was announced by the Commerce Secretary, Mr G.K. Pillai, here today.

However, when contacted the Finance Ministry maintained that no notification had been issued so far in this regard.

Crude soyabean oil was the only vegetable oil that attracted customs duty.

Both palm and sunflower crude oils can be imported duty free.

Soybean oil is always sold at premium over palm oil. The removal of customs duty on crude soyabean oil may help reduce this premium.

It may also bring down India’s dependence on imports of palm oil from Malaysia and Indonesia.

India depends on imports to meet almost half its edible oil demand.

In the four months ended February 2009, the country’s soyabean oil imports stood at 2,81,349 tonnes, up from 1,72,884 tonnes in the year ago period, according to the Solvent Extractors’ Association of India.