22 July 1999
Indian oil millers want seed imports
INDIAS oil milling industry wants the government to combat the problem of idle capacity in the sector by reducing customs duties and encouraging oilseed imports.
But the government could incur the wrath of oilseed farmers in India if it took such a move, reports the Financial Times.
Industry officials say a slump in the world prices of refined, bleached and deodorised palmolein, sunflower and soyabean oils has made importing highly profitable.
India imported nearly 1.8 million tonnes of edible oils in the seven months to May, against more than 570,000 tonnes in the same period of 1997-98.
The Indian duty structure currently encourages the import of oils over oilseeds with 40% duty on oilseeds against 15% on oils.
The millers want the government to change duties on edible and non-edible oils since domestic prices have fallen between 30% and 38% in the past six months.
- Financial Times 22/07/99 page 36