Edible oil imports crowding out local units
Ludhiana: Oil expeller units are facing a crisis yet again as demand for machinery and parts has taken a severe hit. Sources said the situation has been caused by increased imports of edible oil, especially palm oil and sunflower oil.
As per estimated figures shared by the Solvent Extractors Association of India, as compared to import of 32.26 lakh litres of palm oil in 2021-22, total import of palm oil into India in 2022-23 reached 49.09 lakh litres. The import of Sunflower oil also reached 13.67 lakh litres in 2022-23 as compared to 11.10 lakh litres in 2021-22.
Rohit Gupta, president, Importer-Exporter Club Punjab, said, “Large imports of edible oil over the last two years has led to a chaotic situation for the oil expeller machinery and parts manufacturers of India, majority of whom are based in Ludhiana. Due to this, local sales of machinery and parts has dropped drastically because in the wake of increasing imports, hardly any new edible oil plants are coming up where machinery and parts would be needed. The Centre needs to take immediate action on increasing imports as this is not only hurting local edible oil companies and expeller makers but also our economy.”
Upkar Singh Ahuja, president, Chamber of Industrial and Commercial Undertakings (CICU), said, “Increase in imports of edible oil discouraging local oil plants and manufacturers from expanding thus resulting in stagnant demand for oil expeller machinery.”
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