Mumbai,
In yet another blow to the ailing edible oil industry, the Argentina government has removed export duty on soyabean and soya oil to make their exports competitive and retain its share in global edible oil market where prices are falling.
Pravin S Lunkad, President, Solvent Extractors Association, said the move by newly elected Argentina President Mauricio would have a positive impact on their export but soyabean and soya oil prices have started falling in the international markets.
Indian edible oil industry and farmers are already hit by the 24 per cent increase in edible oil import at 14.4 million tonnes last oil season (November 2014 to October 2015) worth about ?65,000 crore ($10 billion).
“Globally, edible oil prices are at record low levels of 2008 and Indian edible oil producers are unable to compete with rising imports due to high prices they pay for soyabean in India,” he said in a statement on Monday.
Indonesia and Malaysia, the major palm oil producing countries, have set up a council with a common objective to maintain higher price of palm products in the international market and reduce competition amongst them.
India imported nearly 9.5 million tonnes of palm products from Indonesia and Malaysia – almost two-third of total imports in 2014-15.
Both these countries have inverted duty structure where crude palm oil attracts more duty than finished product refined palm oil, affecting the domestic refining sector. This may have serious implication for India in the long run if the government does not take corrective measures, Lunkad said.
The association has asked the Centre to revise the duty difference between crude and refined oils to at least 15 per cent to protect the margins of domestic industry and ensure some value addition within the country.
The Association has made representation with the Commission for Agricultural Costs and Prices to reduce import duty on high oil-content oilseeds such as rapeseed/mustard and sunflower seeds to 5-10 per cent from 30 per cent so that crushing of these can reduce edible oil imports and also enhance oilmeal supply for domestic consumption by feed industry and exports.
“Oilseed imports will not have any impact on the farmers as they are protected with an assured minimum support price of the government,” he said.
Source :thehindubusinessline.com
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