THE Indian government today placed restrictions on refined palm oil imports in a bid to protect domestic refiners.

The curbs on refined, bleached and deodorised (RBD) palm olein were announced in a notification by the Commerce Ministry.

Mumbai-based trade group Solvent Extractors’ Association of India had earlier sought government measures to support domestic oilseed crushers against cheaper refined palm oil imports.

“India should only import crude palm oil (CPO) to allow for the better utilisation of the domestic refining capacity. It’s a step in the right direction,” president Atul Chaturvedi told Bernama.

India relies on imports for 70% of its edible oil requirements. Palm oil from Indonesia and Malaysia constitutes almost two-thirds of its annual vegetable oil imports of 15 million tonnes.

New Delhi, effective this month, reduced the import duty on CPO to 37.5% from 40%, and 45% from 50% for refined palm oil.

Local refiners had asked for a higher duty differential between CPO and refined products.

The restrictions on RBD palm olein come amid higher consumer edible oil prices despite an increase in oilseed output and edible oil imports.

“It shows that hoarders are creating artificial scarcity for speculation. We are serious and will take the necessary action,” Consumer Affairs Minister Ram Vilas Paswan tweeted yesterday.

The rupee’s depreciation has also contributed to costlier imports of edible oils. – Bernama, January 8, 2020.