FM may slash import duty on edible oils, metals

The government appears set to slash import duty on base metals, soya oil and palm oil in the budget in a bid to tame inflation, which dipped marginally to 6.63% during the week-ended February 10. With pulses, wheat and onions raising political uproar, the government is also likely to extend the ban on wheat and pulses export till March 2008, besides allowing zero duty import of the commodities as part of the strategy to augment domestic supply and check further price rise. Sources said the move to extend the ban on export of pulses and allowing zero duty import of wheat was discussed by the cabinet committee on prices, while a reduction in the import duty on soya oil by 10% and that on crude and refined palm oil by 5% each has been endorsed by a committee of secretaries (CoS) earlier this month. The government is also likely to import 2 lakh tonnes of pulses to augment supplies. Between April and December 2006, India, which is a net importer of pulses, has already imported 16.6 lakh tonnes of pulses estimated to be worth Rs 2,600 crore, 19% higher than the 14.05 lakh tonnes imported during the corresponding period last year.
courtesy:economictimes
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