Edible oil business physique SEA on Monday urged the federal government to impose an import responsibility of 35.75 per cent on Palm stearin in keeping with crude palm oil (CPO) to guard the home palm refining and oleochemicals business.
Palm stearin, a by-product of CPO, is used within the meals business for the manufacturing of bakery fat like Vanaspati and margarine shortenings. It can also be used within the cosmetics and private care business.
Mumbai-based Solvent Extractors Association of India (SEA) President Atul Chaturvedi in a press release mentioned whereas import of palm stearin and different by-products of CPO are allowed at zero responsibility, however the home gamers are manufacturing the identical merchandise from imported CPO
Domestic gamers import CPO paying customs responsibility of 35.75 per cent in addition to agricultural cess.
Chaturvedi mentioned this ‘inverted duty structure’ is affecting each the home palm refining and oleochemical business.
“Due to the import of these products at zero duty, our palm oil refining industry is forced to sell its by-products, like Stearin and Palm Fatty Acid Distillate (PFAD) at very low prices, seriously affecting their profitability,” he mentioned.
SEA mentioned it flagged this situation with Union Food Secretary Sudhanshu Pandey in a current digital assembly and demanded the federal government to impose customs responsibility on palm stearin to the extent of CPO.
“If corrective action is not taken, it has the potential of driving our domestic Oleochemical industry to sickness,” the affiliation mentioned.
