Lok Sabha Question No. 1225 (UNSTARRED), answered on 2016-07-25
Subject: Import Duty on Edible Oils
Ministry: COMMERCE AND INDUSTRY
Asked by: S.P. MUDDAHANUMEGOWDA, C.S. PUTTARAJU

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1225 TO BE ANSWERED ON 25 TH  JULY, 2016

## IMPORT DUTY ON EDIBLE OILS

## 1225. SHRI S.P. MUDDAHANUME GOWDA: SHRI C.S. PUTTA RAJU:

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

- (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
- whether  the  yields  of  oilseeds  of  the  farmers  have  been  adversely  affected  due  to
- (d) 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 India's commitments to the World Trade Organization (WTO), the
- maximum rate of duty permitted for edible oils ranges from 40% (olive oil, edible  grade)  to  300%  (coconut,  sunflower,  groundnut  and  palm  oil). Currently, the basic customs duty rates applicable on import of all types of crude edible oils (of vegetable origin) is 12.5% and on all types of refined edible oils (of vegetable  origin) is  20%,  applicable  with  effect  from 17.09.2015. WTO rules do not prescribe minimum duty rates for imports.
- (b) There is no rebate on the import of edible oils.  The increase in import of
- edible  oil  is  required  to  bridge  the  gap  between  domestic  production  and consumption. Import duties are reviewed from time to time to balance and

harmonise  various  policy  objectives  and  to  safeguard  the  interests  of farmers, processors and consumers.

- (c) The quantity of edible oil imported during the last three years is as under:

| Year    | Quantity (in lakh tonnes)   |
|---------|-----------------------------|
| 2013-14 | 104.67                      |
| 2014-15 | 127.31                      |
| 2015-16 | 156.39 (provisional)        |

The basic customs duty rates applicable on import of crude and refined edible oils (of vegetable origin) for the last three years are as under:

| Description                               | Rate of Basic Custom Duties   | Period for which applicable        |
|-------------------------------------------|-------------------------------|------------------------------------|
| Crude edible oils (of vegetable origin)   | Nil                           | 01.04.2008 to 22.01.2013           |
| Crude edible oils (of vegetable origin)   | 2.5%                          | 23.01.2013 to 23.12.2014           |
| Crude edible oils (of vegetable origin)   | 7.5%                          | 24.12.2014 to 16.09.2015           |
| Crude edible oils (of vegetable origin)   | 12.5%                         | From 17.09.2015 without time limit |
| Refined edible oils (of vegetable origin) | 7.5%                          | 01.04.2008 to 19.01.2014           |
| Refined edible oils (of vegetable origin) | 10%                           | 20.01.2014 to 23.12.2014           |
| Refined edible oils (of vegetable origin) | 15%                           | 24.12.2014 to 16.09.2015           |
| Refined edible oils (of vegetable origin) | 20%                           | From 17.09.2015 without time limit |

- (d) Most of the oilseed cultivation is on marginal land and is dependent on rainfall  and  other  climatic  conditions.  While  imports  are  necessary  to  meet domestic consumption requirements, government policy is aimed at increasing the  domestic  production  of  oilseeds  and  edible  oil  through  steps  such  as bringing  more  area  under  oilseeds  cultivation,  improving  the  productivity  of oilseeds cultivation, tapping new sources of edible oil and market intervention through Minimum Support Prices.

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