MUMBAI (Commoditiescontrol) – Mustard Oil Producer Association Of India (MOPA) President, Babulal Data said the association will urge the government of Rajasthan to announce the state as “Sarso Pradesh” in seminar, which will commence on March 15 in Jaipur. He also said that they will request the government to provide tax relief on mustard, mustard oil and mustard cake followed by providing subsidy to farmers on mustard seed and fertilizers to encourage more oilseed planting.
Mr. Data said that the association’s seminar on mustard oil industry was last held in 2011. Taking place after a gap of three years, this year’s seminar is likely to witness participation from around 1,500 representatives from India and overseas. Experts will share their views on the country’s mustard seed scenario, mustard oil and mustard cake production, supply-demand and price trend. ‘We will represent the industry at the seminar and voice out its needs to the government’, Mr.Data said. ‘Rajasthan contributes around 50% to country’s total mustard seed production. So, the state government should announce it as ‘Sarso Pradesh’,’ he added further.
Before talking about industry related issues, he said the government should raise import duty on all edible oils to protect domestic edible oil industry. The domestic edible oil industry is facing issues from cheap edible oil imports. This encourages oil blending instead of use of pure oil. This in turn is acting as a major bottleneck in growth of the industry.
Mr. Data said that the announcement should not only be on papers. The state government should take immediate steps towards the plan. First of all, the government should abolish 1 per cent market tax on mustard seed along with 3 per cent value added tax (VAT). Earlier, VAT was 5 per cent. Government should provide subsidy on mustard seeds, storage and fertilizers so that they get more attracted to mustard seed sowing.
The state receives many imported oil and then re-packed or other form distribute to other states, which attracts 3 per cent tax. This tax should be immediately removed as tax is already paid as import duty.
On mustard cake scenario in the country, Mr. Data said that around 80 per cent of mustard cake manufactured in the state is sold to other Indian states and exported to overseas countries. Mustard cake attracts 1 per cent of Central Sales Tax (CST) and 4 per cent VAT if sold to other states. The sellers later on apply for refund of 4 per cent VAT from government. There is lot of confusion to get refund and the process takes time. The government should terminate this VAT. Similarly, exporters pay 5 per cent tax on mustard cake exports to foreign destinations and to get refund they get subjected to many obstacles. Sometimes they don’t get refunded on time, hence it should be slashed.
(By Commoditiescontrol Bureau; +91-22-61391533)