Oil Palm Developers and Processors Association (OPDPA) requests government to revise import duty to 45% on Crude Palm oil; appreciates government proposal of increasing edible oil imports by another 5% to 17.5%

? Industry required import duty structure will help motivate farmers increase their oil palm plantations and ensure industry remains viable in an era of price control by global oil producing nations

? OPDPA asks Government to establish separate oil import policy to secure future of the industry and farmer that can save $ 10 Bn in edible oil imports

Hyderabad, Tuesday, 8th December 2015: OPDPA (Oil Palm Developers and Processors Association), the nodal agency for oil palm development in India, has lauded the move by the government to increase the import duty of crude Palm oil by another 5% to 17.5%. However, in the interest of famers and the long term sustainability of the industry that has the potential to make India self sufficient in its edible oil requirements, OPDPA has requested the government to consider revising the import duty to 45%. India?s current vegetable oil import bill is to the tune of $10 Billion out of which 80% comprises of palm oil and its derivatives.

Palm oil prices are commodity based and are dictated by the largest Oil Palm producers Malaysia and Indonesia. Falling global prices have cut into the margins of the famers as well as the processors making it difficult for the industry to remain viable.

Commenting on the development and the demands of OPDPA, Mr. Sanjay Goenka, President ? OPDPA said, ?The CACP committee has benchmarked a crude palm oil price of $800 (Per MT) as the price of Oil at which the Indian farmer makes a decent return.In order to meet the minimum remunerative price to farmers (As given by the CACP guidelines), the import duty on crude palm oil needs to be close to 45%. Only on support of this sort, will farmers be happy and thereby take up further plantation of oil palm which is essential for the socio economic growth of India?

Since Palm Oil self sufficiency will help save valuable foreign exchange, the industry requires several policy and structural changes from the government for it to realize its full potential. Included in the demands of the industry and farmer is the request to the government to set up a separate import policy for Palm Oil.

About OPDPA: The Oil Palm Developers and Processors Association(OPDPA) is a consortium of companies that include 3F Oil Palm Agrotech Pvt. Ltd., Godrej Agrovet Ltd., Navbharat Oils Ltd., Radhika Vegetable Oils Pvt. Ltd. and Ruchi Soya Industries Ltd., established to work towards the growth of the Oil Palm Industry. Despite a challenging policy and regulatory environment, over the last 2 decades the industry has grown from a ?0? hectares in oil palm then to a respectable 200,000 hectares across several states including the North East. The industry has a huge potential to help India bridge the country?s edible oil deficit, generate several thousand jobs and help in nation building.

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