Indore (Madhya Pradesh): In the wake of the cut in import duty on edible oils, the domestic oilseed industries have urged the central government to reconsider the decision in the interest of the domestic oil sector.
In this regard, Dr. Davish Jain, chairman of the Soybean Processors’ Association of India (SOPA), has written to Union commerce minister Piyush Goyal. Dr. Jain has informed that he had made the request on behalf of the Soybean Processors’ Association of India (SOPA) and the wider community of oilseed processors, soybean, and oilseed farmers.
To note, recently the Central government has taken a decision to reduce the customs duty on crude edible oils by 11% with effect from May 30.
Dr Jain said that under normal circumstances, the government reduced import duty to provide benefits to the consumers from rising inflation. Ironically, this duty reduction had come at a time when India’s current inflation rate stood at 3.16% in April this year, the lowest since July 2019.
Dr. Jain mentioned that the decision of duty reduction a day after the government’s announcement to hike MSP appeared contradictory and would hurt oil seeds production, local oil seed farmers and processes. The 11% cut in customs duty on crude edible oils would apparently flood the Indian market with cheaper imported oils, leading to a drop in domestic edible oil prices.
He said there was a growing apprehension among experts and farmer groups that this decision would result in a decline in oilseed acreage during the current Kharif season as farmers may switch to more profitable crops.
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