Plea to restore import duty on edible oils
The Solvent Extractors’ Association (SEA) is seeking immediate imposition of the import duty on edible oils in order to curb more defaults following continuous crash in prices. “We are likely to meet the ministry officials concerned and request to impose import duty on edible oils,” said Ashok Sethia, president, SEA.
In a bid to bring down the prices, the government had scrapped import duty on crude edible oils on March 31. On refined oils, the duty was fixed at 7.5%. “It is high time, the duty is reinstated, as prices of oil and oilseeds have plummeted both in overseas and domestic markets, hurting the entire industry and farmers, Sethia said.
Fall in prices of crude palm oil, which constitutes around 80% of India’s oil imports, has already resulted in import defaults of 200,000-300,000 tonnes by September end. “CPO prices have fallen by another 25% in the last 7-8 sessions and the imports could reach 550,000-600,000 tonnes,” Sethia said.
Farm gate soyabean prices in local markets have fallen below Rs 1,600 per 100kg, when arrivals are around 250,000 bags of 100 kg each. “Arrivals are likely to touch one million bags in the next 8-10 days, and the prices may further fall, hitting the farmers hard,” Sethia said. The situation in the forward markets is even worse. “Crushers were selling crude soyabean in panic fearing further fall in the prices,” according to a trader.
Tags: farmer, import