Biodiesel group calls for concessions

The Biodiesel Association of India, formed recently, called for an increase in the selling price of biodiesel to make its production economically viable. The Indian government fixed the ex-refinery biodiesel price at Rs25 (US$0.56) per liter in October 2005, later revising it to Rs26.50 (US$0.59). The industry, however, feels that biodiesel should be allowed to sell at par with diesel fuel, which is currently at Rs31.35 (US$0.70) per liter. The association is also seeking concessions on the import duty for non-edible and industrial oils that can be used to produce biodiesel. Jatropha will only be available in quantities large enough to be used for biodiesel production in five to seven years. We want the government to allow imports of other forms of feedstock till then,” said Sandeep Chaturvedi, the association’s president, and director of Gujarat Oleo Chemicals. The association has proposed that the import duty on non-edible oils be similar to that of crude oil, which is 5%. Non-edible oil imports are levied at 15% customs duty and 16% countervailing duty. (December 6, 2006)