Experts back hiking of veg oil import duty
Edible oil sector expert and Godrej International director Dorab Mistry on Wednesday suggested that India must consider raising import duty on vegetable oils when the country is harvesting oilseed crops.
By ET Bureau |
BANGALORE: Edible oil sector expert and Godrej International director Dorab Mistry on Wednesday suggested that India must consider raising import duty on vegetable oils when the country is harvesting oilseed crops.
���A continuation of subsidised imported oil will compound the problem for everyone, including the government.
At some stage during harvest time the government would have to seriously consider steps like raising the import duty on vegetable oil to support domestic prices; otherwise oilseed farmers will feel betrayed,��� he said at the World Oils & Oilseeds Convention in Singapore.
Oilseed output in India has remained stagnant even as demand has been on the rise.
While production in 1996-97 (the oil year runs from November to October) was 24.38 mn tonne, it was 24.28 mn tonne in 2006-07 and projected at 27.16 mn tonne in 2007-08.
India accounts for 7.1% of global oilseed output while demand is pegged at 9.3% of the world total. Mr Mistry said that in 2007-08, the global edible oil industry had lost nearly 1 mn tonnes in demand on the food front and a further 0.5 mn tonnes from the biodiesel sector.
The incremental global supply in 2008-09 would be driven by higher supply of rapeseed/mustard, soya and sunflower oils, he added.
���A continuation of subsidised imported oil will compound the problem for everyone, including the government.
At some stage during harvest time the government would have to seriously consider steps like raising the import duty on vegetable oil to support domestic prices; otherwise oilseed farmers will feel betrayed,��� he said at the World Oils & Oilseeds Convention in Singapore.
Oilseed output in India has remained stagnant even as demand has been on the rise.
While production in 1996-97 (the oil year runs from November to October) was 24.38 mn tonne, it was 24.28 mn tonne in 2006-07 and projected at 27.16 mn tonne in 2007-08.
India accounts for 7.1% of global oilseed output while demand is pegged at 9.3% of the world total. Mr Mistry said that in 2007-08, the global edible oil industry had lost nearly 1 mn tonnes in demand on the food front and a further 0.5 mn tonnes from the biodiesel sector.
ADVERTISEMENT
The incremental global supply in 2008-09 would be driven by higher supply of rapeseed/mustard, soya and sunflower oils, he added.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
