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Oil Mills Assoc demands cut in import duty on rape seed

By Staff Correspondent
The Bangladesh Oil Mills Association Sunday demanded reduction of Import duty on rape seed for the survival of 1 *86 mu«*ord oil producing mills
The association at a press conference at Hotel Purbanl said the present import duty of 20 per cent along with five per cent Import Permission (IP) on rape seed arc making the mustard oil uncompetitive to •oyabeen oil. It demanded re duction of the duty to 10 per cent.
Vice President of the association. speaking at the pres* conference, said while the Im port duty is being imposed on rape seed for mustard oil. similarly It Is being imposed on crude oil for soyabean Industrie* He said only 13 seer of mustard oil can be extracted from one maund of rape seeds while 39 seer of soyabean oil enn be extracted from same quantity of crude soyabean oil.
Although the duty on import of crude is 45 per cent, this still keeps the price of mustard oil price higher due to the lower extraction rate of oil from rape seed, he added.
At present, mustard oil is selling at Taka $0 a kg while soyabean oil I* selling at Taka 40akg
The existing 1200 mustard oil mills produce about 1 25 lakh tons of oil annually Country'* total demand of edible oil U five lakh tons
Of the total production, only about 65000 Ions of mustard oil is produced from local rape seed, the rest Is extracted from Imported seeds
Rape seed 1* Imported mainly from Canada China. Poland and France Each Ion of rape seed costs about between 270 to 320 US dollar
The association said that If the duty 1* reduced, price of mustard oil can be brought down to the price of soyabean
If measures are taken to bring down the price of mus tard oil sale of spurious oil will also stop the association viewed
It said crude soyabean oil arc now being sold as mustard oil. The crude oil has the same appearance as mustard oil The spurious merchants mix chemical to the crude for the smell of mustard oil as converting the crude to soyabean oil is less profitable than mustard oil due to price differ cnee
The association said when the prices of both levels down the selling of spurious mustard oil automatically stops
The association also urged the government to keep the quota Imposed on the import of crude soyabean oil to wive the mustard oft Industry and the 50,000 worker* engaged In the 1200 mills