Agriculture Ministry proposes further 5% hike in import duty of edible oil

The Agriculture Ministry has proposed further hike in import duty of edible oils by 5% in a bid to protect the interest of farmers.

In September, the government had raised import duty on crude edible oils to 12.5% from 7.5%, while the duty on refined edible oils was increased to 20% from 15%.

"Farmers have been affected due to rise in import of edible oils. We have proposed the Finance Ministry to consider 5% increase in import duty from the current level," a senior Agriculture Ministry official told PTI.

The Ministry has proposed increase in import duty on crude edible oils to 17.5% and on refined edible oils to 25% from the existing level, the official said.

The proposal has been moved following several demands from state governments, especially Andhra Pradesh, as well as from the industry body Solvent Extractors' Association (SEA).

As per the ministry's data, area sown to oilseeds remained down at 57.08 lakh hectare till last week of the ongoing rabi season that started from October, as against 65.73 lakh hectare in the year-ago period.

SEA has demanded an import duty hike on crude oil to 25% and that of refined oil to 45% to protect the interest of crushers and also local farmers to sustain their interest in oilseed cultivation.

The country's edible oil imports rose by 24% to 14.42 million tonnes in the 2014-15 oil year that ended in October due to fall in international prices, SEA data said.

About 60% of India's annual edible oil demand of 18-19 million tonnes is met through import, mostly from Malaysia and Indonesia.