New Delhi (Commoditiescontrol)- The Solvent Extractors Association of India (SEA) has urged the government to raise import duty on vegetable oil in order to protect the farmers. It is feared that, falling local prices amid availability of cheap imported vegoil has not only strained finances but it is likely to push farmers to a point that they would incurre heavy losses on their produce.
In this connection, the association has written a letter to the central government and sought import duty on crude vegetable oil to be raised from 7.5% to 25%. Similarly, the SEA wants import duty on refined vegetable oil to increase from 15% to 45%.
B V Mehta, Executive Director, SEA said, “ The domestic edible oil industry is suffering huge losses because of heavy imports of vegetable oils, hence, the government should take steps to curb imports for protecting the domestic industry.”
Recent import and export data have been highly discouraging. While imports countinue to grow at a brisk pace, on the export fron the country has been losing out to cheaper sources from South America and other cheaper alternative made available by various countries.
India’s vegetable oil import are seen setting a new record at 14 million tonnes (mt) this year, on lower availability from domestic sources and subdued prices. This would be a rise of a little over 20 per cent from the 11.6 mt in 2013-14.
Last month, the import jumped 35 per cent to 1.5 mt, the highest monthly figure, from 1.11 mt in the same month last year, according to the SEA. In the nine months to July, import rose 26 per cent to 10.35 mt compared to 8.2 mt in the same period last year.
India has been losing its competitiveness in the world market following the China currency devaluation. This fact is being underlined by recent SEA data that suggesing plunging Indian oilmeal exports last month, down 86 per cent from year earlier to 18,410 tonnes. The report informed of south Asian countries trimmed purchases of expensive Indian rapeseed meal and soymeal.
(By Commoditiescontrol Bureau; +91-22-40015532)
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