Indian cos look to bring edible oil from Lanka

Indian cos look to bring edible oil from Lanka
PTI
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First Published: Tue, Jun 17 2008. 02 08 AM IST
Updated: Tue, Jun 17 2008. 02 08 AM IST
New Delhi: Indian edible oil manufacturers such as Ruchi Soya Industries Ltd and Adani Wilmar Ltd, which have vanaspati, or hydrogenated vegetable cooking oil, units in Sri Lanka, now want to bring refined oils to India, as shipping vanaspati has become unviable with the removal of customs duties on crude edible oils.
India has removed customs duties on such oils, including palm oil—the main ingredient in making vanaspati—and cut import duties on refined oils to 7.5%.
Vanaspati makers had moved into Sri Lanka when import duty on palm oil was zero there and 65% in India.
“Since these units were set up solely to export vanaspati to India and there was no such demand of the hydrogenated oil in Sri Lanka, they have to either close their units or make changes to produce refined edible oils,” said an analyst, who did not want to be identified.
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First Published: Tue, Jun 17 2008. 02 08 AM IST