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Major decisions in respect of sugar since 1998.*

  • The sugar industry was de-licensed in the year 1998. However, the system of partial control on sugar through release mechanism continued under which the levy: non-levy ratio was fixed for each sugar season and levy obligation was being levied on the sugar produced in a sugar season (October – September) by the sugar mills.
  • With the abolition of levy sugar obligation on the sugar mills from the sugar produced by them after 30.9.2012, a new scheme has been introduced by the Government with effect from. 01.6.2013 whereby the State Governments/UT Administrations procure sugar from the open market for distribution under public distribution system (PDS) at the present retail issue price (RIP) of Rs.13.50 per Kg. and the Central Government provides a fixed sugar subsidy of Rs.18.50 per Kg. limited to the fixed levy sugar quota of the respective State/UT. The Central Government has since discontinued the system of issue of monthly levy sugar release orders to the sugar mills concerned on the sugar produced on or after 01.10.2012. Thus, the State Government/UT have to procure the sugar meant for distribution under the monthly levy sugar quota fixed by the Central Government, from the open market, from any of the sugar mills situated in the country depending on their commercial prudence and take action for distribution of the levy sugar within their State/UT according to the fixed monthly levy sugar quota. With the help of NIC, an online module has been set up for submission of subsidy claims by the States/UTs on quarterly basis.
  • With the development of web-based system for collection of data/statistics on sugar, the Proforma-II, Annual Return in Statement I to IV and Estimates of sugarcane & sugar production are now being collected online from the sugar mills.

Major decisions in respect of edible oils and fats since 2007.*

  • By virtue of Notification No. CUS NTF No. 08/2007 dated 24.1.2007, import duty on Crude Palm Oil/Crude Palmolein has been reduced from 70% to 60%, import duty on refined Palm Oil/RBD Palmolein reduced from 80% to 67.5%, import duty on Crude Sunflower Oil reduced from 75% to 65% and import duty on refined Sunflower Oil reduced from 85% to 75%.
  • With effect from. 01.03.2007, import duty on Crude Sunflower Oil has been reduced from 65% to 50% and import duty on refined Sunflower Oiland other Oils has been reduced from 75% to 60%. Further edible oils (except Soyabean oil, rapeseed oil and mustard oil) will attract education cess of 3% of the aggregate of customs duty. With effect from 1.3.2007, all edible oils will not attract Special Additional Duty of customs @ 4%.
  • With effect from 13.4.07, import duty on Crude Palm Oil/crude palmolein has been reduced from 60% to 50% and import duty on Refined Palm Oil/ RBD has been reduced from 67.5% to 57.5%.
  • With effect from 23.7.2007, import duty on Crude Palm Oil/Palmolein and Refined Palm Oil/Palmolein has been reduced from 50% to 45% and 57.5% to 52.5% respectively and import duty on Crude and Refined Sunflower Oil has been reduced from 50% to 40% and 60% to 50% respectively and import duty on Crude and Refined Soyabean Oil has been reduced from 45% to 40%.
  • The earlier Order dated 12.06.2000 and 21.04.2003 wherein minimum level of usage of indigenous oils and maximum level of usage of expeller mustard oil in vanaspati were stipulated, have been rescinded vide Order No. 45-VP(2)/99 dated 11-2-2008 under the provisions of Vegetable oil Products (Regulation) Order, 1998. Thus as on date, there is no mandatory compulsion regarding usage of indigenous oils including expeller mustard oil in the manufacture of vanaspati.
  • W.e.f 21.03.2008, import duty on Crude PalmOil/Palmolein and Refined Palm Oil/Palmolein has been reduced from 45% to 20% and 52.5% to 27.5%, respectively and import duty on Crude and Refined Sunflower Oil has been reduced from 40% to 20% and 50%to 27.5% respectively and import duty on Crude & Refined Mustard/Rapeseed Oil has been reduced from 75% to 20% and 75% to 27.5%respectively.
  • With effect from 1st April,2008, the customs duty on crude and refined forms of Palm Oil, Palmolein, Palm Kernel Oil, Soyabean Oil, Rapeseed/Mustard Oil,, Sunflower Oil, Safflower Oil, Groundnut Oil, Coconut Oil, and some other Vegetable Oils has been reduced to zero percent and 7.5% respectively, vide Notification No.42/2008-Customs issued by the Ministry of Finance, Department of Revenue.
  • DGFT vide notification no. 122/2008-Customs has increased the custom duty on degummed Soyabean Oil to 20%% with effect from 18.11.2008. However, the custom duty has been reduced to Nil with effect from 24.3.2009 vide DGFT Notification No. 27/2009-customs. The duty structure of 0% on crude oils and 7.5 % unrefined oils has been continued.
  • DGFT vide Notification No. 85 (RE-2007)/2004-2009 dated 17th March, 2008 has banned export of all edible oils under Chapter 15 of Schedule I. However, export restrictions have been lifted in respect of castor oil (of non-edible grade), coconut oil (through Cochin Port) and certain oils (namely, Kokum oil/fat, sal oil/fat/stearin, Dhup oil, neemseed oil, Nigerseed oil, Mango Kernel oil/stearin/olein, processed or refined sal fat) produced from minor forest origin vide Notification No. 92(RE-2007)/2004-2009 dated 1.4.2008 issued by Department of Commerce for period of one year. The ban of export was extended up to 16.03.2010 vide notification No. 98(RE-2008)/2004-09 dated 17.4.2009. DGFT vide notification 39(RE-2008)2004-09 has permitted the export of fish oil with effect from 20.11.2008. The ban imposed vide notification no. 98(RE-2008)/2004-09 was extended up to 30.9.2010 vide notification No. 04/2009-2014 dated 4 September ,2010. The ban imposed vide notification no. 04/2009-2014 dated 4.9.2009 was extended up to 30.9.2011 vide notification No. 07 (RE-2010)/2009-2014 dated 30 September ,2010. Vide Notification No. 77(RE-2010)/2009-14, dated 28th September, 2011, the ban on export of edible oils with above exemption was extended up to 30.9.2012. Vide Notification No. 24 (RE-2012)/2009-14, dated 19th October,2012, the ban on export of edible oils has been extended till further orders.
  • DGFT vide notification no. 60(RE-2008)/2004-09 has permitted the export of edible oils in branded consumer packs of up to 5 Kgs, subject to the limit of 10000 tons during the next one year up to 31.10.2009 with effect from 20.11.2008.It was extended up to 31.10.2010 with effect from 1.11.2009 and further extended up to 31.10.2011 with effect from 1.11.2010. Vide Notification No. 77(RE-2010)/2009-14, dated 28th September, 2011, the export of edible oils in branded consumer packs with a ceiling of 10,000 tons was extended from 1.11.2011 to 31.10.2012. Export of edible oils banned with effect from. 17.03.2008 was extended till further orders Vide Notification No. 24(RE-2012)/2009-14 dated 19th October 2012. Notification No. 32 (RE-2012)/2009-14 dated 5th February, 2013 castor oil, coconut oil from all EDI Port and through Land Custom Stations (LCS), certain oils produced out of minor forest produce have been exempted from the prohibition on export of edible oils and export of edible oils in branded consumer packs of up to 5 Kgs. subject to a Minimum Export Prices of USD 1500 per ton is allowed. Further vide Notification No. 45 (RE-2013)/2009-2014 dated 9th October, 2013, MEP on export of edible oils in branded consumer packs of up to 5 Kgs has been reduced to USD 1400 per MT. This was further reduced to USD 1100 vide Notification No. 80(RE-2013)/2009-2014 dated 30th April 2014.
  • State Governments have been authorized to re-impose stock restrictions with respect to edible oils/oilseeds with effect from 7th April, 2008 which has been extended up to 30.9.2015.
  • In order to provide relief to the poorer section of the society, from the rising prices of edible oils, the Central Government introduced a Scheme for Distribution of 10 lakh tons of edible oils in 2008-09 at a subsidy of Rs. 15/- per kg. through State Governments/UTs@ 1 kg. per ration card per month. The scheme was extended during 2009-10, 2010-2011, 2011-12 and further in 2012-13 up to 30.9.2013. After the implementation of the Scheme, edible oil prices have substantially declined and poorer sections were provided edible oils at subsidized rates.
  • In order to check the instances of under-invoicing of Edible Oil imports, the Government had fixed tariff value on their import vide Notifications issued by Ministry of Finance and revised from time to time. Government has taken decision to defreeze the tariff value of freezed since 2006 to align it with the current international prices which will help to augment the domestic availability of edible oils and better capacity utilization of refining industry. The tariff value is revised fortnightly.
  • In order to fulfill the obligations of Bussiness Rules of the Department, a new order namely Vegetable Oil Products Production and Availability (Regulation) Order 2011 (GSR. 664-E of 2011) under Section 3 of Essential Commodity Act 1955 was notified on 7th September 2011.
  • Vide Notification No. 02/2013-Customs dated 23rd January, 2013, the import duty on crude edible oils has been increased from 0% to 2.5%.
  • Vide Notification No. 02/2014-Customs dated 20th January, 2014, the import duty on refined edible oils has been increased from 7.5%to 10.0%. Vide Notification No. 34/2014-Customs dated 24th December, 2014, the import duty on crude oils increased from 2.5% to 7.5% and import duty on refined edible oils has been increased from 10.0%to 15.0%
  • Vide Notification No. 46/2015-Customs dated 17th September, 2015, the import duty on crude oils increased from 7.5% to 12.5% and import duty on refined edible oils has been increased from 15.0% to 20.0%.