New Delhi: India’s plans to cut import duties on edible oils for the third time this year could prompt farmers to switch to other crops and douse hopes of boosting domestic oilseeds output, trade officials said.
A food ministry official said on Monday that another duty cut was likely, after a cut in the customs duty on palm oil in April by 10 percentage points to 50%, to help counter high international prices. The basic customs duty on palm oil was 80% in August 2006. Soyoil, which competes with palm, carries a customs duty of 45%.
Davish Jain, chairman of the Central Organization of Oil Industry and Trade, said this sent a wrong signal for the current crop sowing.