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Oil Ind welcomes import duty hike on vanaspati

The edible oil industry has lauded the Budget, especially the Govt's decision to hike the vanaspati import duties to 80%.

india Updated: Feb 28, 2006 16:02 IST
Press Trust of India
Press Trust of India

The edible oil industry has lauded the Union Budget, especially the government's decision to hike the vanaspati import duties from 30 per cent to 80 per cent.

"We compliment the budget for safeguarding the domestic vanaspati industry by raising the import duties and maintaining status quo on the import duties on edible oil," The Solvent Extractors Association of India (SEA) Executive Director BV Mehta said.

However, Mehta was disappointed that the government took no measures to curb the import of vanaspati from Sri Lanka where duties are zero per cent.

He pointed out that no incentives were extended to the industry for its oilseed development programmes.

"India imports 50 lakh tonnes of edible oil. Looking at this government could have created an oilseed development fund on the lines of jute sector and should have given incentives thereafter," he added.

The Soybean Processors Association of India (SOPA) Chairman Rajesh Agrawal thanked the government for increase in the import duties on vanaspati and maintaining the duties on edible oil imports.

"I thank the government for granting three of our wishes and we will thereafter lobby for grant of additional measures in favour of the industry," he said.

Commenting on Vanaspati import duties from Sri Lanka being maintained, Agrawal said "everything cannot be addressed at one time and we are positive that government will come out with some long term measures.

First Published: Feb 28, 2006 16:02 IST