The Solvent Extractors’ Association of India (SEA) has urged the Centre to increase the difference in import duties between crude and refined edible oils to 15 per cent from the present 7.5 per cent.
Addressing the gathering at the SEA awards function on Wednesday, Ajay Jhunjhunwala, who stepped down from the position of SEA President on Wednesday, thanked the Central Government for increasing the import duty on edible oils. This will make the edible oil industry more resilient and also the price movement in edible oils will enable the oilseed farmers to receive a better price for their produce. He said this move will be a win-win situation for farmers, industry and the government.
Appealing to the government for raising the difference in import duties between crude and refined edible oils to 15 per cent from the current 7.5 per cent, he said it would support the domestic refiners and encourage value-addition within the country.
Urging the Government to regulate the import of refined edible oils, he said the exporting countries levy higher “export taxes” on crude edible oils, making refined edible oils more affordable to import. Increasing the import duty differential between crude and refined oils would discourage refined oil imports and protect domestic producers.
He said after the recent increase in import duty, most likely, there will be a heavy inflow of refined products from SAARC countries, particularly Nepal and Bangladesh, with nil/concessional import duty to India. This could be supplied to the border States such as Bihar, Uttar Pradesh and West Bengal. To counter this, SEA urged the government to impose quota of 5,000 tonnes per month per country.
Edible oil mission expansion
Seeking expansion of the National Mission on Edible Oils, he said it is essential to expand mission’s scope now to cover all major oil-bearing seeds, helping the country reduce its dependence on edible oil imports.
“I urge the government to allocate an outlay of ₹25,000 crore over the next five years to reduce import dependence to 30 per cent, from the present 60 per cent of our domestic edible oil consumption,” he said. The government should also reconsider the restrictions on certain genetically modified varieties, which could boost productivity and reduce costs, he added.
Stating that the recent fall in the prices of soyabean below the minimum support price (MSP) had created unrest among farmers, he said: “We commend the Central Government’s decision to allow states like Madhya Pradesh, Maharashtra and Karnataka to procure soyabean at MSP, which has positively impacted prices. We are sure, with the recent hike in import duty, industry will be in a better position to pay the MSP or even more to the farmers.”
Stressing the need to lift the ban on export of de-oiled ricebran, Jhunjhunwala said the ban has adversely affected solvent extraction plants, especially in East India. Removing this ban would rejuvenate the sector, boost ricebran processing, increase domestic ricebran oil production, and reduce dependence on edible oil imports, he said.
Sanjeev Asthana, CEO of Patanjali Foods Ltd, took charge as new President of SEA for 2024-25 on Wednesday.
