The government on Thursday decided to impose 2.5 per cent import duty on crude edible oil while retaining the present import duty of 7.5 per cent on all refined edible oils.
“This has been done with the objective to shore up the price payable to farmers for fresh fruit bunches of oil palm, which is linked to the landed price of crude palm oil,” an official release said after the decision by Cabinet Committee on Economic Affairs.
With enhanced duty on crude palm oil, price payable to farmers will increase by around Rs 150 per tone, it said.
Industry, however, flayed the government decision saying that such a move will adversely affect the sector.
India imports about half of total domestic requirement of cooking oil. In 2011-12 oil year (November-October), the total import of vegetables oils was record 10.19 million tonnes.
Published 17 January 2013, 18:07 IST