In a bid to protect the interest of farmers and the domestic oil processing industry amid falling global prices, the government has hiked import duty on both crude and refined edible oil by 5 percent. As per the notification issued by the Central Board of Excise and Customs (CBEC), the customs duty on crude oil has been increased to 7.5 percent from 2.5 percent earlier, while the duty on refined edible oil has been raised to 15 percent from 10 percent.
India imports about 60 percent of the annual domestic demand of vegetable oils, which include edible and non-edible oil at about 19 million tonnes. India's vegetable oil imports rose 12 percent to an all time high of 11.82 million tonnes in the 2013-14 marketing year ended October on account of increase in domestic consumption and low rates of cooking oils in global markets. Earlier, both the ministries of food and agriculture had recommended an increase in import duty of refined edible oil and crude edible oil.
Applauding the government's latest decision, the industry stated that the government has kept the duty difference between the crude and refined edible oils at 10-12 percent which in turn would be result in an increase in capacity utilisation and value addition by the domestic refiners.
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