The Hindu Business Line : Vanaspati makers flay canalisation of edible oils import

THE vanaspati industry has flayed the Government's decision to introduce `back-door canalisation' of imports of crude sunflower oil and refined rapeseed oil through the Tariff Rate Quota (TRQ) route.

Under the TRQ regime, the customs duty on imports of refined rapeseed, mustard and colza oil up to an aggregate quantity of 1.50 lakh tonnes in a financial year has been set at 45 per cent, with imports beyond this level being chargeable at 85 per cent. For crude sunflower seed or safflower oil, the duties have been fixed at 50 per cent for up to imports of up to 1.50 lakh tonnes in a financial year and 75 per cent for imports beyond this quota.

But as per a public notice issued on January 22 by the Directorate-General of Foreign Trade (DGFT), the imports of these oils would be exclusively routed through NDDB, Nafed and STCs. ``The re-introduction of canalisation under the garb of TRQ imports through State agencies is a clear deviation from the spirit and policy of the Government, which is committed to free market trade to encourage larger participation of the private sector. Canalisation of the import of these oils through STC, NDDB and NAFED will deprive the industry of its legitimate rights as actual user to import the right quality oil at right prices,'' a Vanaspati Manufacturers' Association of India (VMA) release said.

The release added that vanaspati units, in their capacity as actual users, should be allowed to directly import these oils under the TRQ without going through the designated canalising agencies.

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