The Cabinet Committee on Economic Affairs has approved the proposal of Ministry of Consumer Affairs, Food & Public Distribution to defreeze the tariff value on imported RBD palmolein from US $ 484 per tonne and align it with the current international prices.
Background:
As tariff value remained unchanged for about 6 years, though import duty on refined oil is 7.5%, the effective rate is only about 3.6% on current prices. In September, 2011, Indonesia the largest exporter of Crude Palm Oil (CPO) to India increased export duty on CPO from 15% to 16.5% and reduced export duty on refined palmolein from 15% to 8%, which further affected the domestic refining industry.
During November, 2011 to April, 2012, about 9.19 lakh tonnes of RBD refined palmolein was imported against 4.87 lakh tonnes during corresponding period in previous year (increase of 88.7%), whereas imports of CPO increased marginally from 21.72 lakh tonnes to 24.93 tonnes (increase of 14.8%).
Background:
As tariff value remained unchanged for about 6 years, though import duty on refined oil is 7.5%, the effective rate is only about 3.6% on current prices. In September, 2011, Indonesia the largest exporter of Crude Palm Oil (CPO) to India increased export duty on CPO from 15% to 16.5% and reduced export duty on refined palmolein from 15% to 8%, which further affected the domestic refining industry.
During November, 2011 to April, 2012, about 9.19 lakh tonnes of RBD refined palmolein was imported against 4.87 lakh tonnes during corresponding period in previous year (increase of 88.7%), whereas imports of CPO increased marginally from 21.72 lakh tonnes to 24.93 tonnes (increase of 14.8%).
