Cheap palmolein imports were affecting the edible oil refining sector and it can have long-term ramifications
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istock

The Solvent Extractors Association of India (SEA) has urged Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi to increase the import duty on RBD (refined, bleached and deodorised) palmolein to 40 per cent from the current 32.5 per cent. 

In a letter to Joshi, SEA President Sanjeev Asthana said the duty difference between RBD palmolein and crude palm oil was only 7.5 per cent and it should be increased to at least 15 per cent. 

“We feel 15 per cent duty difference would help reduce palmolein imports and replace the same with crude palm oil imports. Overall imports into the country would not be affected and it will have no impact on edible oil inflation,” he said. 

Improve utilisation

Such a decision will help improve the capacity utilisation and employment generation in the country. It would be in line with the Prime Minister’s vision of “Make in India”, the SEA president said.  

Cheap palmolein imports were affecting the edible oil refining sector and it can have long-term ramifications. 

“India imports large quantities of palm oil from Indonesia and Malaysia. Traditionally, crude palm oil is imported by Indian refiners and massive investment has been made in the port-based palm oil refining industry to cater to the ever-increasing demand for palmolien in the country,” said Asthana. 

Importing crude palm oil helps in value addition within the country, apart from generating employment. The current import duty difference between crude and refined oils of 7.5 per cent encourages import of refined palmolein as opposed to CPO, he said.

Palmolein $50/t cheaper

Pointing to data, he said currently, the cost and freight price of RBD palmolein is cheaper by  $50 a tonne compared to CPO. This was against the nation’s interest, he said.  

The main reason for the rise in palmolein imports is Malaysia and Indonesia were encouraging exports by their processing industry and have imposed higher export duty on CPO. The current duty differential between RBD palmolein and CPO is insufficient to check these imports, Asthana said. 

As the domestic refining industry was suffering, the situation required a course correction, he said. 

Published on April 25, 2025