Demand to Impose 44% Import Duty on Crude Palm Oil

Hyderabad: While the Central Government has reduced the import duty on Crude Palm Oil (CPO) from 10 percent to 5 percent, the Telangana government is demanding the imposition of a 44 percent customs duty on it. Telangana's Agriculture Minister stated that to ensure remunerative prices for domestic oil palm growers and to boost enthusiasm and interest in palm cultivation, it is essential to levy a total import duty of 44 percent—comprising a 40 percent basic customs duty and a 10 percent surcharge—on CPO.

In a letter addressed to the Prime Minister, the Union Finance Minister, the Agriculture Minister, and other concerned ministers, Telangana's Minister for Agriculture, Marketing, and Cooperation stated that the reduction in import duty could exert downward pressure on CPO prices in the domestic market, thereby affecting the price palm growers receive for Fresh Fruit Bunches (FFB). Although the government is keen on increasing domestic production of oil palm and palm oil and is making efforts to that end, such a policy would hinder the achievement of this objective and discourage oil palm growers.

The Telangana Agriculture Minister asserts that while the interests of general consumers must be protected, it is unjust to make domestic palm-growing farmers the scapegoats. If India aims to become self-reliant in edible oil production, the 'National Mission on Edible Oil-Oil Palm' must succeed, and providing incentives to farmers is crucial for this purpose.