SEA asks members not to increase prices of old stock of edible oil
The Solvent Extractors’ Association of India (SEA) urged members to keep retail prices of older stock at pre-September 14 levels amid rising global prices. President Sanjeev Asthana called for a 5% RoDTEP incentive for rapeseed and soybean meal exports and removal of the de-oiled rice bran export ban, while praising the government’s MSP increase for rapeseed-mustard.
The Solvent Extractors’ Association of India (SEA) has said that it has asked its members not to increase the prices of older stock and to maintain retail prices at pre-September 14 levels.
In the monthly letter to the members of SEA, Sanjeev Asthana, President of the association, said the association anticipated a decrease in international export prices following the increase in import duties on edible oils.
“However, contrary to expectations, global prices have risen due to supply shortages, further driving up import costs. The Food Ministry has expressed concern over the rising prices, particularly for stock imported at lower duties. In response, the association immediately issued an advisory to members, urging them not to increase the prices of older stock and to maintain retail prices at pre-September 14 levels,” he said.
Oilmeals export
Seeking the support of the Government for the export of oilmeals, he said India mainly exports rapeseed and soyabean meal. Currently priced $30-40 higher than competitors, both these oilmeals face stiff competition in international markets.
“With a record soyabean crop of 120 lakh tonnes (lt) and an anticipated similar rapeseed crop, we need to export 20-25 lt of each to maintain crushing capacity. However, current conditions make it difficult to export such large quantities. We urge the Government to provide a 5 per cent RoDTEP (Remission of Duties and Taxes on Exported Products) incentive for oilmeal exports to support this sector,” he said, asking the Government to remove the ban on de-oiled ricebran exports. Terming this ban as unjustified, he said it is harming rice bran processing and oil production.
Appreciating the Government’s decision to increase the MSP for rapeseed-mustard by ₹300 to ₹5,950 a quintal, he said this is a positive step. “I encourage the Government to ensure market forces allow buying at MSP, minimizing the need for stockpiling. In cases where prices fall below MSP, Government agencies must step in promptly to procure oilseeds at the MSP to support farmers,” he said.
Three-pronged approach
He commended the Government for its three-pronged approach – immediate, medium, and long-term actions for increasing oilseed production.
On the immediate-term approach, he said the Union Cabinet recently announced an increase in the MSP for various rabi crops for the upcoming season. The largest increase of ₹300 a quintal has been for rapeseed-mustard. This move is expected to encourage farmers to increase sowing. The MSP for safflower has also been raised by ₹140 to ₹5,940 a quintal, further incentivizing oilseed production.
On the medium-term approach, he said the Government announced an increase in import duties for both crude and refined edible oils by 22 per cent last month. This is expected to raise the cost of imports and encourage farmers to shift towards oilseed cultivation.
“However, the association has been advocating for a spread of 15 per cent between the duties on refined and crude oils. Unfortunately, this proposal has not yet been accepted by the Government, which could affect the desired reduction in refined oil imports,” he said.
On the long-term approach, he said the association has been urging the Government for many years to address the year-on-year increase in edible oil imports, which impacts foreign exchange reserves and poses a risk to the nation’s food security.
“We are pleased to inform you that the Union Cabinet has approved the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds). This mission will operate from 2024-25 to 2030-31 with a financial outlay of ₹10,103 crore. Its primary focus is on increasing the domestic production of key oilseeds such as rapeseed-mustard, groundnut, soyabean, sunflower, and sesame, along with oils from secondary sources like ricebran, cottonseed, and tree-borne oils. The goal is to increase primary oilseed production to 69.7 million tonnes by 2030-31 and, in conjunction with the NMEO-Oil Palm project, raise edible oil production to 25.45 million tonnes by 2030-31,” he said.
