Lok Sabha Question No. 4002 (UNSTARRED), answered on 2017-03-27
Subject: Import of Edible Oil
Ministry: COMMERCE AND INDUSTRY
Asked by: DILIP PATEL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4002 TO BE ANSWERED ON 27 th  MARCH, 2017

## IMPORT OF EDIBLE OIL

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

## 4002. SHRI DILIP PATEL:

- (a) the  details  of  maximum  and  minimum  import  duties  permitted  in  the  rules  laid down by the World Trade Organisation (WTO) with respect to the import of edible oils and the import duties being charged currently;
- (b) whether the import of edible oils is increasing steadily due to the excessive rebate in their imports and if so, the details thereof along with the other reasons therefor;
- (c) the quantum of edible oils imported during the last three years along with the import duties charged thereon, year-wise; and
- (d) whether the yields of oilseeds of the farmers have been adversely affected due to exceedingly low import duty and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

## (SMT. NIRMALA SITHARAMAN)

- (a) As per the World Trade Organization (WTO) Rules, a Member has to notify the maximum rate  of  duty  which  can  be  levied  on  import  of  products  unless  the  product  has  been notified  as  unbound.  For  the  edible  oils,  the  bound  duty  notified  to  WTO  varies  from product to product with some of them having the maximum bound duty of 300%. The detail of import tariff on edible oils being charged currently are as under:
- (b) to  (d)  The  oilseeds  production in the country has been adversely affected mainly because  of  lesser  coverage  due  to  delayed  /deficient  monsoon  at  the  time  of sowing  and  low  productivity  due  to  insufficient  rains  during  the  crop  growing phase and untimely rains at maturity stage. As there is a gap between domestic production and demand for edible oils in the country, the shortfall is met through imports.  The  quantum  of  edible  oils  imported  during  the  last  three  years  along with the import duties charged thereon, year-wise is as under:

|   Sr no | Edible Oil                                 | Rate of duty   | Date from which applicable   |
|---------|--------------------------------------------|----------------|------------------------------|
|       1 | Crude Palm Oils                            | 7.5%           | 23.9.2016                    |
|       2 | Refined Palm Oils                          | 15%            | 23.9.2016                    |
|       3 | Crude Sunflower oil                        | 12.5%          | 17.9.2015                    |
|       4 | Refined Sunflower oil                      | 20%            | 17.9.2015                    |
|       5 | Soyabean oil (crude)                       | 12.5%          | 17.9.2015                    |
|       6 | Soyabean oil (refined)                     | 20%            | 17.9.2015                    |
|       7 | Crude Mustard/rapeseed/colza/canola        | 12.5%          | 17.9.2015                    |
|       8 | Refined Mustard/rapeseed/colza/canola oils | 20%            | 17.9.2015                    |
|       9 | All other edible oils (Crude)              | 12.5%          | 17.9.2015                    |
|      10 | All other edible oils (Refined)            | 20%            | 17.9.2015                    |

| Year                       | Quantum of edible oils imported   | Import duty during the year   | Import duty during the year   |
|----------------------------|-----------------------------------|-------------------------------|-------------------------------|
| (Nov.-Oct)                 | (in Lakh Tonnes)                  | Crude                         | Refined                       |
| 2014-15                    | 138.53                            | 7.5% (w.e.f 24.12.2014)       | 15% (w.e.f 24.12.2014).       |
| 2015-16                    | 148.50                            | 12.5% (w.e.f 17.09.2015)      | 20.0% (w.e.f 17.09.2015)      |
| 2016-17 (Nov.16 to Jan,17) | 33.95                             | 7.5% (w.e.f 23.09.2016)       | 15.0% (w.e.f 23.09.2016)      |

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