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Import duty on soya oil on way out |
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21/03/2009 |
| The Union government is expected to remove the import duty of 20 per cent on soya oil to narrow its premium over imported palm oil. The Finance Ministry is likely to issue a notification in this regard soon, it is learnt.
The import duty was imposed only on crude soya oil. All other crude oils, such as palm and sunflower, can be imported duty-free. This makes each kilo of soya oil Rs 11.70 more expensive than crude palm oil. With both oils at zero duty, the difference will come down to Rs 6.60 a kg.
Because of this price disparity, soya oil imports have plummetted. According to data collected by the Solvent Extractors’ Association of India (SEAI) in the last four months, the share of soya oil in vegetable oil imports fell below 20 per cent.
However, soya oil imports picked up in February to garner a 30 per cent share of oil imports. |
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