Indian edible oils industry demands increase in import duty
PUNE: After two years of drought, the current year witnessed oilseed production rebounding. However, the increase in production has not brought any cheer to our farmers as prices have collapsed below the MSP levels. This has happened probably for the first time in decades and needs immediate action.
“We take this opportunity to bring to your notice certain developments which can have far reaching consequences for the cultivation of oilseeds in our country if immediate remedial actions are not initiated to retrieve the situation.
Monsoon has already arrived in Kerala in time and is expected to move further in next 10-15 days across the country and the farmers will start sowing operations very soon. However, the current price level is the lowest in the last five years and farmers are totally discouraged to sow the oilseeds in the current kharif season. Further, there is hardly any market intervention operation to support the price level.
With a view to ensure farmers do not loose total interest in oilseed cultivation we suggest the following intervention on top most priority.
The SEA has demanded: “Import duties on Crude Oils should be raised to 20% from a level of 7.5% on crude palm oil and 12.5% on Soft Oils with immediate effect. Import duty on Refined Oils should be raised to minimum 35% from current level of 15% on Palmolein and 20% on other Refined Oils.”
“These decisions would have practically no effect on inflation as Edible Oil availability in the world is very good on back of very good crops worldwide. We feel the international prices would actually come down with this action of Indian Government. Further, raising Import duties on Refined Oils to 35% would also help in improving capacity utilization of domestic refining industry and would be in line with the stated policy of Make in India,” SEA release stated.
Source: ECONOMIC TIMES