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Quality norms soon for oil-bearing materials import

Our Bureau

MUMBAI, June 23

THE Government will soon formulate quality standards for the import of oil-bearing materials in order to prevent the possible abuse of the liberal policy following the recent reduction in customs duty, a senior official of the Food and Consumer Affairs M inistry told Business Line.

On June 12, the Government reduced the rate of basic customs duty on oil-bearing materials such as ricebran and oilcakes from 35 per cent to 15 per cent ad valorem. The move was intended to make available to the solvent extraction industry sufficient raw material for processing and for economic utilisation of the huge idle capacity.

However, apprehensions that the concession may be used for the import of oilmeals or extractions have come to the fore. Instead of oilcakes that contain seven to eight per cent oil, fully extracted meal (with one per cent oil) may be imported, it is now feared. Oil extracted meals can also be called oil-bearing materials, some may argue.

In order to pre-empt the confusion, the Centre is likely to lay down certain quality specifications including minimum oil content conditions. The country is already a producer and exporter of oilmeals and extractions. The solvent extraction industry has been pleading for liberal import of oil-bearing materials in view of domestic shortage in relation to the aggregate processing capacity.

As the industry was already reeling under the burden of over 60-per cent idle capacity, liberal import of extractions instead of oilcakes would hurt domestic interests, a processor said.