Date:26/02/2005 URL: http://www.thehindubusinessline.com/2005/02/26/stories/2005022601901200.htm

Back Vanaspati makers seek duty relief

Our Bureau

Mumbai , Feb. 25

VANASPATI producers have urged the Government to waive the excise duty currently levied at the rate of Rs 1,250 per tonne so that the beleaguered industry receives some relief from the steep increase of 15 percentage points in Customs duty on its raw material crude palm oil.

In a representation to the Finance Minister, the New Delhi-based Indian Vanaspati Producers' Association (IVPA) has argued that as a result of recent changes in duty structure, the cost of crude palm oil to the vanaspati industry would go up by approximately Rs 1,100 a tonne.

IVPA said manufacturers are not in a position to absorb the additional cost because of low margins prevailing in the industry and that the industry's profitability is considerably eroded because of duty-free imports from SAARC countries such as Nepal and Sri Lanka.