People's Democracy

  Raise Custom Duty On Vanaspati: AIKS

THE All India Kisan Sabha (AIKS) expressed its strong resentment at the growing suffering of farmers due to continuous decline in the prices of oilseeds. Identifying the faulty import policy of the central government as the main reason for such a situation, the AIKS demanded immediate rationalising of tariff structure and raising of the custom duty on ‘vanaspati’ to 100 per cent, and also putting it in the negative list of import in existing FTA.

In a statement issued on July 4, the AIKS stated, “While raising import duty on crude palm oil (raw material) to 80 per cent, the government did not touch the duty on vanaspati (finished product). Consequently under the garb of the Foreign Trade Agreement (FTA), Vanaspati began to be imported at NIL rate of duty mainly from Sri Lanka and Nepal. This imported vanaspati is cheaper than domestic products, thus forcing the domestic units to close down. Out of 244 vanaspati units, around 120 have already been closed. This is creating havoc with the lives of both farmers producing oil seeds and workers working in vanaspati units.”

Given this situation, the AIKS demanded the government to protect the lives of farmers, workers and domestic vanaspati industries, as promised in National Common Minimum Programme of the UPA government by rationalising the tariff structure and raising the custom duty on ‘vanaspati’ to 100 per cent, and putting it in negative list of import in existing FTA. (INN)