Domestic edible oil industry not hurt by import: Scindia

The government today said the domestic edible oil industry is not likely to be affected by imports from Indonesia after the Asian nation recently introduced new export duty on palm oil.

In September, Indonesia hiked export duty on crude palm oil (CPO) by 1.5% to 16.5% and lowered duty on refined Palmolein (RBD) from 15% to 8%.

India is the main importer of CPO from Indonesia.

Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to Rajya Sabha that representations have been received to ban import of edible oils in consumer packs consequent upon introduction of new export duty structure for palm oil products by Indonesia.

"However, as per the assessment of Department of Food & Public Distribution, domestic edible oil industry is not affected by the import of edible oil," Scindia added.

During current financial year (April-July), India imported 25,45,875 tonne of edible oil, the minister said.

Solvent Extractor Association of India (SEAI), the premier association of Vegetable Oil Industry & Trade in India, had said lowering of duty on RBD by Indonesia would make it cheaper than what is produced in India.

India is presently imposing 7.73% import duty on RBD which the SEAI said would not be sufficient.

SEAI had said that the new duty structure will make RBD palmolein from Indonesia cheaper by $152 per million than the RBD produced in India from processing of the imported CPO.