Hike in import duty on oil to help farmers: SEA
Edible oil producers in Gujarat have praised the central government’s decision to hike import duties on crude and refined oils. The effective duty on crude soya, sunflower, and palm oils has risen from 5.5% to 27.5%, and on refined oils from 13.75% to 35.75%. This move is expected to support domestic farmers and the oil industry by encouraging local production and stabilizing prices.
Ahmedabad: The edible oil makers in Gujarat have welcomed the central govt’s decision to hike import duty on crude and refined oils, saying that this will help the domestic agriculture sector as well as the industry.The effective duty on crude soya, sun, and palm oils has increased from 5.5% to 27.5%, while refined oil has hiked from 13.75% to 35.75%.
According to the data of Solvent Extractors’ Association of India (SEA), the overall import of vegetable oils during the first 10 months of the current oil year (Nov 2023 to Aug 2024) was 13.69 lakh tons compared to 14.12 lakh tons during the same period last year, down 3%.BV Mehta, executive director, SEA, said, “In the last two months, the soybean ex-mandi price was much below the minimum support price (MSP) of Rs 4,892 by Rs 550 to 600 per quintal, which created a lot of unrest among the farmers.
“According to Mehta, the new crop is just 4 to 5 weeks away, which will bring additional pressure on price realization to the farmers during the harvesting period. The central govt recently permitted Madhya Pradesh, Maharashtra, and Karnataka to procure soybean at the fixed MSP of Rs 4,892 per quintal, which will support the price, he added.”In the two to three days, the price moved to Rs 4,600 to Rs 4,700 per quintal. We proposed to the govt that the best solution would be increasing import duty on crude edible oils and refined oils by 20% to 25%.
” The duty hike will encourage local oilseed production. Priyam Patel, managing director of an edible oil manufacturing company, said, “The increase will provide much-needed support to local oilseed farmers. This will strike a balance between imports and local production. We believe this step will benefit the entire value chain—from farmers to processors.”Ahmedabad: The edible oil makers in Gujarat have welcomed the central govt’s decision to hike import duty on crude and refined oils, saying that this will help the domestic agriculture sector as well as the industry.
The effective duty on crude soya, sun, and palm oils has increased from 5.5% to 27.5%, while refined oil has hiked from 13.75% to 35.75%.According to the data of Solvent Extractors’ Association of India (SEA), the overall import of vegetable oils during the first 10 months of the current oil year (Nov 2023 to Aug 2024) was 13.69 lakh tons compared to 14.12 lakh tons during the same period last year, down 3%.BV Mehta, executive director, SEA, said, “In the last two months, the soybean ex-mandi price was much below the minimum support price (MSP) of Rs 4,892 by Rs 550 to 600 per quintal, which created a lot of unrest among the farmers.”According to Mehta, the new crop is just 4 to 5 weeks away, which will bring additional pressure on price realization to the farmers during the harvesting period.
The central govt recently permitted Madhya Pradesh, Maharashtra, and Karnataka to procure soybean at the fixed MSP of Rs 4,892 per quintal, which will support the price, he added.”In the two to three days, the price moved to Rs 4,600 to Rs 4,700 per quintal. We proposed to the govt that the best solution would be increasing import duty on crude edible oils and refined oils by 20% to 25%.” The duty hike will encourage local oilseed production.Priyam Patel, managing director of an edible oil manufacturing company, said, “The increase will provide much-needed support to local oilseed farmers. This will strike a balance between imports and local production. We believe this step will benefit the entire value chain—from farmers to processors.”
