COMMODITY
SEA urges government not to tamper with import duties of edible oils
Oct-29-2020

Edible oils trade body -- Solvent Extractors Association of India (SEA) has urged the government not to tamper with the import duties or encourage PSUs to import edible oils at concessional duties in a move to contain domestic prices. SEA, in a representation made to the Prime Minister's Office (PMO) and concerned ministries, stated that any policy change to bring down edible oil prices by lowering import duty would send a wrong signal to oilseed farmers.

The SEA said that edible oil prices had moved up globally in line with other commodities due to the massive infusion of liquidity in the economies by various governments. However, for far too long, the government has kept edible oil prices very low in the country, which has discouraged oilseed farmers, thereby increasing import dependence up to about 70 percent. This price rise will encourage the oilseed farmer to increase acreage and adopt better farm practices.

Currently, mustard sowing is in progress, and it is likely that the government target of 12.5 million tonnes of mustard production may be achieved. The SEA said ‘If our country is able to achieve 12.5 million tonnes of mustard production, it would give an additional 1.5 to 2 million tonnes of domestically produced mustard oil. Our Import dependence may come down’. That apart, it said edible oil constitutes a tiny percentage of the household budget, and a marginal increase in prices would have no material impact.

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