15/09/2011 (India Infoline) - Solvent Extractors' Association (SEA) OF India requested the government for the revision of Tariff Value on Refined Edible Oils\RBD Palmolein so that the difference between the Crude Edible Oils & Refined Edible Oils be maintained at 7.5% at least. This will also protect the domestic refined industries from the possible flood of imported refined palm oil from Indonesia.

The Indonesian Govt. has now announced change in the Export Duty structure of various Palm Oils when exported from Indonesia.

The New Export Duty Structure of the Indonesian Govt. which will be implemented w.e.f. 15.9.2011 will change the export duties on crude oil from 15% to 16.5% , RBD, Plam oil (Bulk) from 15% to 8% and RBD Palm oil , consumer pack from 10% to 2%. Thus Govt. of Indonesia wants to discourage export of Crude Palm Oil and encourage export of Refined Palm Oils or even Refined and Packed in Consumer Packs from Indonesia. This will lead to closure of Indian Edible Oil Industry.

Therefore, SEA of India demanded the hike in the import duties of Refined Edible Oil to 16.5% , raise the tariff value on Refined Edible Oil to $ 1200 PMT and imposed the import ban on Edible oil in Consumer Packs.

These measures will protect the thousands of farmers in Andhra Pradesh/ Tamil Nadu/ Karnataka/ Orissa/ Bihar & North Indian States have taken up Palm Plantations in the hope selling fresh fruit bunches to local Refining Industries. Govt. of India is encouraging Palm Oil Plantations in all the States and thousands of more farmers are being encouraged to start Palm Plantations.

India already has Edible Oil Refining Capacity of over 12 Million Tonnes per annum at the Ports itself which is being expended by additional 3 million Tones. Against above Capacity India Imports around 7 million Tones thus utilize only 60% of its installed Capacity. The low Tariff value on Refined edible Oils has already resulted into increased import of about 1 million Tonnes of Refined Edible Oils.