Amid rising prices of cooking oil, the government is unlikely to increase import duty on crude and refined edible oils that currently stands at zero and 7.5 per cent, respectively. “There will not be any increase in import duty of crude and refined edible oils,” a senior government official told reporters, here.
To protect the domestic processors from cheaper imports, industry body Solvent Extractors Association of India (SEA) has been demanding an increase in the import duty on edible oils. However, rising food inflation, which has increased to 14.44 per cent for the week ended December 18, 2010, has forced the government not to tweak the existing duty structure.
Currently with a zero import duty on crude palm oil, the domestic pricing of oil is directly exposed to price fluctuations in palm and soybean in the global markets.