MUMBAI (Commoditiescontrol) - Ahead of Sunday 25th October 2015 'Kharif Convention' - the Solvent Extractors Association of India (SEA) released sluggish forecast on oilseed production in the country. Most of the findings on oilseed crop scenario was made available during its recently held aanual general meeting, wherein it had predicted soybean crop output of 85 lakh tonnes, groundnut at 31 lakh tonnes, seasame seed (4.6 lakh tonnes) and sunflower (0.5 lakh tonnes).
Thus between these 4 crops, its availability was expected to be lesser by around 5.3 lakh tonnes compared to last year.
The SEA Groundnut Promotion Council undertook a survey of the Gujarat Groundnut Kharif Crop and it is estimated to be little higher at 14.95 lakh tonnes this year, compared to 14.35 lakh tonnes last year. In a revent visit to Saurashtra the main groundnut growing area, the SEA Groundnut Crop Survey Team noticed the vast difference in farming practice leading to diverse yields from farm to farm. It noted that the main reasons for poor yield was lack of modern farming practice followed by the farmers.
To educate farmers on modern farming prcatices, the Association is considering to set up a few model farms starting with Groundnut in Saurashtra (one in each district) with the help of progressive farmers and has requested Mr Bipinbhai Patel, Chairman Groundnut Promotion Council to initiate the action including appointing an Agriculture Expert to co-ordinate with the farmers for establishing model farms.
Meanwhile, SEA has underlined the fact that, production of oilseeds in the country is more or less stagnant and hovering between 270-280 lakh tonnes during the last few years. The association called for immediate steps to boost production through using hubrid of modern technology and using genetically modified (GM) seeds. SEA wants industry and the farmers to join hands and undertake contract farming coupled with co-operative formed amongst the farmers to grow oilseeds on large size farms to increase productivity of oilseeds and ensure a good net remuneration to the farmers; as well as availability of oilseeds to the industry at a competitive price, in line with the international prices. This multi-pronged approach will definitely increase the production of oilseeds in the country.
SEA is worried about current trend in prices. It pointed out that, the soybean prices on the futures markets have flared up without any fundamental support or reasons, which is causing financial damage to the farmers, processing industry and meal exporters. It has requested SEBI to take necessary action, such as imposing margins and other measures to cool the market.
SEA has also listed various bottlneck in exports markets. It said, even though India's FOB prices of oilmeals were higher than that of the major exporters from North & South America’s, the country is able to compete due to logistical advantage, small pack size, non GMO soymeal and the advantage India derived due to ban on exports by USA to Iran. However, presently, India’s oilmeals are totally out-priced by around $90 in the international market nullifying all advantage and, hence, export of oilmeals are at historical low.
In order to revive exports, the Association has recommended to the Ministry of Commerce and Industry for implementation of various steps including, lower classification of oilmeals to 90 or 100 from the current level of 120 by railway. Also, there is need for easy availability of railway rakes for exports to SAARC countries, higher import duty on edible oils to support exporters of oilmeals and permit import of oilseeds at reduced import duty and oilcakes and rice bran at Nil duty to augment the raw material availability for processing.
SEA appreaciated government effort at this front. Recently, the Ministry of Commerce and Industry re-instated the MEIS Award Rate of 5% FOB value for the exports of groundnut meal and minor oils of tree and forest origin which were withdrawn in July.
(By Commoditiescontrol Bureau; +91-22-40015533)
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