THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY ( SHRI OMAR ABDULLAH )
(a) to (e) A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) of LOK SABHA STARRED QUESTION NO. 86, TO BE ANSWERED ON 24.11.2000, REGARDING FALL IN PRICES OF AGRICULTURAL PRODUCE :
(a) to (e) : In the changes to the Exim Policy, announced on 31.3.2000, no changes were effected in respect of import policy of agricultural products like tea, coffee, rubber, wheat, rice, maize, pulses and edible oils. Import of all major cereals as classified under Chapter 10 of ITC(HS) Classifications of Export and Import Items, 1997-2002 is restricted and canalized through Food Corporation of India. Import of all edible oils excepting coconut oil as classified under Chapter 15 of ITC(HS) Classifications of Export and Import Items, 1997-2002, is presently free. Import of all refined edible oil excluding coconut oil, Palm kernel oil, RBD palm oil and RBD palm stearin was made free prior to 1.4.1996. As can be seen from the import data of edible oil furnished below, India has always been a net importer of edible oils.
Year Vegetable oil (Edible)
Qty. (in tons) Value (in Rs. Crore)
1995-96 1061988 2261.9 1996-97 1415794 2929.1 1997-98 1265753 2764.6 1998-99 2378566 7131.4 1199-2000 (Provisional) 4196000 7983.8 2000-2001 (April-July, Provisional) 1137770 1924.3
To regulate import of edible oils, the Customs duties on these have been revised upwards in order to provide adequate protection to domestic oilseed producers. Government is absolutely determined to ensure through appropriate use of tariff mechanism that imports do not cause any detriment or injury to domestic farmers. Towards that end, Government has increased duties on a number of agricultural items where an increase in imports was noticed or apprehended. For example, the duty on arecanut has been raised from 35% to 100%, on poultry products from 35% to 100%, on wheat from 0% to 50%, on skimmed milk powder from 0% to 60%, on apple from 35% to 50%, on rice from 0% to 80%, on coconut from 15% to 35% and on coconut oil from 35% to 45%. India`s tariff bindings at W.T.O. for most of the agricultural items are fairly high and effective rates of customs duties can be suitably raised, in case there is any evidence of substantial increase in imports.
