Govt scraps import duty on crude soya oil

The government has scrapped the 20 per cent import duty on crude soyaoil, four months after imposing the tax to prevent the dumping of cheap products from overseas markets.

"It has already been declared... Notified to zero duty," Commerce Secretary G K Pillai said here today when asked about rolling back the duty on the import of crude soyaoil.

The government had, on November 18 last year, slapped the import levy only on crude soyaoil while leaving the duty structure of other varieties of edible oils unchanged.

As part of the measures to control inflation, the Centre had, on March 31 last year, abolished import duties on crude edible oils and reduced significantly customs duties on refined edible oils at 7.5 per cent.

Expressing disappointment over the decision, Solvent Extractors' Association (SEA) Executive Director told PTI, "We are waiting for the notification. However, the decision is surprising because prices of crude soyaoil are still ruling low. The move will upset farmers, who will be deprived of remunerative prices."

India, the largest buyer of vegetables oils in the world after China, has imported 29.51 lakh tonnes between November 2008 and February this year, compared with 17.61 lakh tonnes in the year-ago period, according to the latest data compiled by Mumbai-based SEA.

The retail prices of soyaoil may decline by 10-15 per cent if duty on crude soyaoil is scrapped, Adani Wilmer Chief Executive Atul Chaturvedi said.

The largest-selling Adani-owned Fortune brand soyabean oil is priced at Rs 53-54 a litre in the retail market in Delhi.

According to an industry estimate, crude soyaoil has become cheaper by 503 dollars a tonne in the global markets since August last year.

The slump in prices has prompted traders to import on a large scale of 2.02 lakh tonnes of soyaoil since November, compared with nil in the year-ago period.