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Centre Mulls Restriction on Imports of Refined Edible Oils

4 Jul 2020 6:08 pm
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Mumbai (Commodities Control) – In a webinar by SOPA, Shubha Thakur-Joint Secretary-Ministry of Agriculture hinted that, “Government plans to restrict imports of refined oils like soy refined and RBD Olein”. Thakur added, “Government is considering possibility to cap imports of Degummed soyoil as well.”

This was in reference to statement by SOPA - Chairman Davish Jain who said mentioned, in the webinar, “India has become dumping ground for SoyOil. India imports nearly 35 Lt Soy Oil in Year which is equivalent to over 210 Lt Soybean. Meanwhile India produces nearly 100 Lt. Not only does the Indian Soy farmer suffer, but soy processors also face the burden of high soyoil imports.”

Davish Jain suggested that "Govt should place a ceiling of 1 Lk tons of soyoil import in crop harvest months and import limit of 2.5 Lk tons in other months." He added that, “Govt must hike Import Duty to 45% as per WTO norms for India”.

Meanwhile rains so far this monsoon has proved to be a boon for ongoing sowing of kharif crop. Kharif acreage as on July 3rd has upped 88% as compared with the corresponding period last year.

However, more-than-normal rainfall will prove detrimental for the crop and may lead to re-sowing in many areas in any scenario, according to Prerna Desai, Edelweiss Agri Services while speaking in a webinar organized by the Soybean Processors Association of India (SOPA).

The speakers at the webinar added that lack of good quality soy seed may actually ruin the chances of bumper yields, despite normal rains and higher acreage figures of soybean.

Maharashtra soy farmers are at the receiving end of poor germination in many areas. Even last year, crop was damaged due to circulation of fake and ‘substandard’ seed. This may lead to farmers opting for other crops, instead of replanting soybean.

Speaking on the soybean outlook, the industry stalwarts reported soy crop sowing nearly 90% complete. According to SOPA, 75% sowing has been reported to be complete in producing regions of Madhya Pradesh.

Edelweiss Agri Services estimates new soybean crop at 108 LT vs CY 94 LT. In Rajasthan it is estimated at 11.49 LT, while in MP at 49.70 LT. However the calender year is seen ending with record carryover stocks due to low consumption.

Having said so, the new crop Soybean Plant delivery is estimated at Rs 2900-3000 or even lower, while ex-plant SoyMeal is seen at Rs 2650-2700/Quintal.

According to Prerna Desai, India’s Soymeal prices are currently much higher in comparison to global meal prices. She adds that Indian soy Meal is $120 Ton costly over Argentina’s.

This means India prices might correct by $40 Ton. Meanwhile this year Indian meal exports may suffer due to lack of demand and skid to 7 Lt.

Exports are seen rising over 20 Lt next year, as India prices are likely to soften with higher soybean supply next season.

(Commodities Control Bureau)

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