Latest News | SEA Urges Govt Not to Tamper with Import Duties of Edible Oils

New Delhi, Oct 28 (PTI) Edible oils trade body SEA on Wednesday 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.

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Mumbai-based Solvent Extractors Association of India (SEA) in a representation made to the PMO and concerned ministries stated that any change in policy to bring down edible oil prices by lowering import duty would send a wrong signal to oilseed farmers.

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The SEA said that edible oil prices have definitely moved up globally in line with other commodities as a direct consequence of 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 per cent.

"This price rise will encourage the oilseed farmer to increase acreage and adopt better farm practices," it said.

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.

"If our country is able to achieve 12.5 million tonnes of mustard production, it would give additional 1.5 to 2 million tonne of domestically produced mustard oil. Our Import dependence may come down," the SEA said.

That apart, edible oil constitutes a very small percentage of household budget and marginal increase in prices would have no material impact, it said.

Currently, soya and groundnut are ruling at 8-10 per cent minimum support price, which will go a long way in helping improve farmers income in line with the Prime Minister's vision of doubling farmers income, it added.

"Keeping the above points in mind, we feel it would not be proper to tamper with reduction of import duties or encourage PSUs to import edible oils at concessional duties as it would be counter productive and harm our long term national interest," the SEA noted.

The trade body further reiterated that there is huge unutilised refining capacity in the country and if prices rise beyond a biting point (not likely) for Indian consumers, the industry can supply refined oil to the government which may be used for subsidising the weaker sections of the society, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)