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Vegetable oil imports rise by 18 per cent in December

14 Jan 2014 Evaluate

Fear of hike in import duty took India's vegetable oil imports in December up by 17.51 per cent to an 11-month high of 10.67 lakh tonnes, and the second highest in a month since 1994, with major purchases contributing cheaper sunflower oil. Import of vegetable oils, comprising edible and non-edible oils, stood at 9.08 lakh tonnes in December 2012. Palm oil shipments too were higher during the month in anticipation of increase in import duty.

As per the data released by the Solvent Extractors’ Association, in the first two months of oil year, (Oil year runs from November to October) imports of vegetable oils rose by 25.12 per cent to 20.12 lakh tonnes as compared to 16.08 lakh tonnes in the year-ago period.

Earlier in January the Cabinet Committee on Economic Affairs (CCEA) increased import duty on refined edible oil to 10 per cent from 7.5 per cent to protect the domestic processing industry and farmers. The import duty on crude edible oil is currently 2.5 per cent. India imports more than 10 million tonnes of vegetable oils every year, which is almost 50 per cent of domestic need.

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