Latest news with #Asthana
Economic Times
3 days ago
- Business
- Economic Times
Import duty cut on crude edible oils will protect local processors: Industry bodies
Edible oil industry bodies SEA and IVPA have hailed the government's decision to cut basic custom duty on crude oils to 10 per cent, saying the move will discourage imports of finished products and safeguard the interests of domestic refiners. ADVERTISEMENT On Friday, the government reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from earlier 20 per cent. The effective import duty (including basic custom duty and other charges) on these three products will now be 16.5 per cent, as against 27.5 per cent earlier. With a sharp rise in imports of refined palmolien in the past six months, both industry bodies have been urging the government to increase the duty difference between crude edible oils and refined edible oils. Welcoming the decision, Solvent Extractors Association of India (SEA) President Sanjeev Asthana said, "the government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent is a bold and timely move. It will discourage imports of refined palmolien and shift demand back to crude palm oil, thereby revitalizing the domestic refining sector." This move will not impact the overall volume of edible oil imports and is unlikely to cause any upward pressure on edible oil prices, he said. ADVERTISEMENT "On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers," Asthana said. India imports more than 50 per cent of its domestic edible oil requirement. ADVERTISEMENT India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October) valuing Rs 1.32 lakh crore. The basic custom duty on refined oils remains unchanged at 32.5 per cent. ADVERTISEMENT At present, the effective duty on refined oils is 35.75 per cent. The Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai said, "We thank the government for accepting the IVPA recommendation to increase the duty differential between crude and refined edible oil to 19.25 per cent." ADVERTISEMENT It is a significantly bold move towards ensuring Make in India and also protecting the sector from influx of refined oils causing capacity injury to the vegetable oil sector, Desai said. "This is a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils," SEA Executive Director B V Mehta said. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. SEA pointed out that the previous import duty difference of 8.25 per cent between CPO (crude palm oil) and refined palmolien had inadvertently incentivized imports of the finished product over the crude form. As a result, during the oil year 2023- 24 (November-October), refined palmolien accounted for over 20 per cent of total palm oil imports, and in the first half of oil year 2024-25 (November 2024-April 2025), its share rose to nearly 27 per cent. On May 29, the C&F price of RBD palmolien was USD 45 per tonne lower than CPO, further encouraging refined imports at the cost of domestic value addition, the SEA added.
Mint
3 days ago
- Business
- Mint
Import duty cut on crude edible oils will protect local processors: Industry bodies
New Delhi, May 31 (PTI) Edible oil industry bodies SEA and IVPA have hailed the government's decision to cut basic custom duty on crude oils to 10 per cent, saying the move will discourage imports of finished products and safeguard the interests of domestic refiners. On Friday, the government reduced the basic custom duty on crude palm oil, crude soyabean oil and crude sunflower oil to 10 per cent from earlier 20 per cent. The effective import duty (including basic custom duty and other charges) on these three products will now be 16.5 per cent, as against 27.5 per cent earlier. With a sharp rise in imports of refined palmolien in the past six months, both industry bodies have been urging the government to increase the duty difference between crude edible oils and refined edible oils. Welcoming the decision, Solvent Extractors Association of India (SEA) President Sanjeev Asthana said, "the government's decision to increase the duty differential from 8.25 per cent to 19.25 per cent is a bold and timely move. It will discourage imports of refined palmolien and shift demand back to crude palm oil, thereby revitalizing the domestic refining sector." This move will not impact the overall volume of edible oil imports and is unlikely to cause any upward pressure on edible oil prices, he said. "On the contrary, the reduction in duty on crude oil will help reduce domestic prices, benefiting consumers," Asthana said. India imports more than 50 per cent of its domestic edible oil requirement. India imported 159.6 lakh tonnes of edible oils during the 2023-24 oil marketing year (November to October) valuing ₹ 1.32 lakh crore. The basic custom duty on refined oils remains unchanged at 32.5 per cent. At present, the effective duty on refined oils is 35.75 per cent. The Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai said, "We thank the government for accepting the IVPA recommendation to increase the duty differential between crude and refined edible oil to 19.25 per cent." It is a significantly bold move towards ensuring Make in India and also protecting the sector from influx of refined oils causing capacity injury to the vegetable oil sector, Desai said. "This is a win-win situation for vegetable oil refiners and consumers, as local prices will go down due to lower duty on crude oils," SEA Executive Director B V Mehta said. India imports palm oil from Malaysia and Indonesia. Soyabean oil comes from Brazil and Argentina. SEA pointed out that the previous import duty difference of 8.25 per cent between CPO (crude palm oil) and refined palmolien had inadvertently incentivized imports of the finished product over the crude form. As a result, during the oil year 2023-24 (November-October), refined palmolien accounted for over 20 per cent of total palm oil imports, and in the first half of oil year 2024-25 (November 2024-April 2025), its share rose to nearly 27 per cent. On May 29, the C&F price of RBD palmolien was USD 45 per tonne lower than CPO, further encouraging refined imports at the cost of domestic value addition, the SEA added.
Yahoo
15-04-2025
- Business
- Yahoo
Leadership change at grid operator should lead to ‘reform,' N.J. Democrat says
New Jersey Democrats have sparred with grid operator PJM Interconnection over who is to blame for rising electricity costs. (Amalie Hindash for New Jersey Monitor) News that the CEO of the state's grid operator is resigning provides an opportunity for the company to 'reform its practices,' a New Jersey Senate Democrat said Tuesday. Sen. John Burzichelli (D-Gloucester) said PJM Interconnection President and CEO Manu Asthana's impending departure should signal a change in priorities for the company, which Democrats have blamed for skyrocketing electric rate hikes. 'The departure of PJM's President is an opportunity for the organization that determines our utility rates to reform its practices to prevent the spikes in electric bills that have been imposed on New Jersey ratepayers,' Burzichelli said in a statement. 'As the disastrous results of the latest energy auction show, the current system is broken.' Burzichelli sits on a legislative committee that has been tasked with examining rate hikes. Asthana announced Monday that he's stepping down at the end of 2025 after five years at the helm of the Pennsylvania-based PJM, which operates the electric grid for 13 states, including New Jersey. The change comes as Democrats in the Legislature fret over rising electricity rates that are scheduled to increase in June. PJM critics have griped that renewable energy projects that could lower consumer costs are languishing in the company's interconnection queue, the waiting list for generation projects looking for permission to connect to the grid. The company has said spikes in demand and lower supply drove up the price of electricity. Republican lawmakers, meanwhile, say Gov. Phil Murphy's focus on renewable energy sources has caused the spike in rate hikes by decreasing the state's energy supply. Sen. Andrew Zwicker (D-Middlesex), when asked about Asthana's retirement during an energy-focused press conference Tuesday, quipped that he thought 'PJM couldn't retire outdated and expensive things.' 'It doesn't really matter who is at the head,' Zwicker said. 'We should make sure that whoever that person is understands the importance of queue reform happening quickly.'
Reuters
14-04-2025
- Business
- Reuters
Head of biggest US power grid, PJM, to step down
April 14 (Reuters) - The CEO of the largest U.S. power grid, PJM Interconnection, will leave his post at the end of the year, the organization said on Monday. Manu Asthana, who has led the PJM for more than five years, steps down at a time of rising electricity prices in the country's biggest power market. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The board of PJM, which covers 13 states and the District of Columbia, has launched a search committee for the next CEO, it said in a statement. "The time has now come for my wife and me to move back to be closer to our family and friends in Texas," said Asthana, who will keep an advisory role with PJM through 2026.
Zawya
24-02-2025
- Business
- Zawya
India's annual palm oil imports to fall behind soft oils for first time, industry official says
KUALA LUMPUR: Palm oil's share of India's annual edible oil imports is set to drop below soft oils for the first time as its rising premium over soyoil and sunflower oil pushes refiners toward more affordable alternatives, the head of an industry body said. Lower palm oil imports by India, the world's biggest buyer of vegetable oils, could weigh on benchmark Malaysian palm oil prices and support U.S. soyoil futures. "Palm oil is getting pricey due to supply issues, so buyers are naturally shifting to soyoil and sunflower oil instead," said Sanjeev Asthana, president of the Solvent Extractors' Association of India (SEA), in an interview with Reuters. The country's palm oil imports in the 2024/25 marketing year ending in October 2025 could fall to as low as 7.5 million metric tons, the lowest in five years, said Asthana, who is also the CEO of Patanjali Foods Ltd. Palm oil is losing market share to soft oils, which are projected to account for a slightly larger volume of imports, he said. Palm oil accounted for 56% of India's total edible oil imports in the last marketing year, but in the first three months of the current year its share fell to 43%, the SEA data showed. Palm oil has been trading at a premium over rival oils for the past few months as supplies from top producers Indonesia and Malaysia were affected by floods at a time when Jakarta has also moved to increase the tropical oil's use in biodiesel. The current premium for palm oil is not sustainable, and once it begins trading at a discount, likely within two months, Indian buyers will increase their imports, Asthana said. Soyoil imports in the current year could increase by 1 million to 1.5 million tons from last year's 3.4 million tons, while sunflower oil imports may rise slightly from last year's record level of 3.5 million tons, he said. India meets nearly two-thirds of its vegetable oil demand through foreign sourcing. It buys palm oil from Indonesia, Malaysia and Thailand, while soyoil and sunoil come from Argentina, Brazil, Russia and Ukraine. The rising availability of local oils, which will help fulfill incremental demand, is expected to keep the country's total edible oil imports steady at around 16 million tons this year, Asthana said. (Reporting by Rajendra Jadhav and Ashley Tang; Editing by Jamie Freed)
