January 21, 2004

India Industry Body Wants Higher Import Duty On Refined Soyoil

India's leading edible oil industry association Tuesday asked the federal government to re-impose a 4% special additional import duty on refined soyoil, in order to prevent loss of business to domestic refiners from rising refined soyoil imports.

"The removal of (the duty) on refined soyoil will lead to more imports of refined soyoil, and the advantage of value addition in domestic plants will be lost," D.P. Khandelia, president of the Central Organization of Oil Industry and Trade, or COOIT, said in a statement.

Indian traders currently import crude soyoil and then refine it. Importing refined soyoil will lead to the loss of business for refiners.

Crude soyoil used to enjoy an import duty advantage over refined soyoil until the federal government decided earlier this month to abolish the special additional duty on all commodities. This brought down the import duty on refined soyoil to 45% from 50.8%. Crude soyoil also attracts a 45% import duty.