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G. Chandrashekhar

`Under the law of the land, import of genetically modified products is prohibited, except with a license issued by the Government. Obviously, current imports are not produced out of pure, non-GM seeds.'

MUMBAI, Jan. 29

IN its bid to save the domestic soyabean crop by restricting large-scale inflow of soyabean oil from abroad, the Centre is seriously exploring imposition of tariff and non-tariff measures that would provide a level-playing field for various vegetable oils.

A significant measure under consideration is a ban on import of soyabean oil produced from genetically-modified (GM) soyabean. This would be a non-tariff measure, which can potentially curtail imports into the country from major origins such as Argentina and the US.

Interestingly, in major soyabean-producing countries, there are no labelling restrictions as a result of which both GM and non-GM soyabean invariably get mixed. Apparently, oil is crushed out of such mixed seeds. The producers do not generally distinguish between GM and non-GM soyabean. Identity preservation methods are available, but expensive.

According to Mr K.M.L. Chhabra, Executive Director of the New Delhi-based apex body for the vegetable oil industry, the Central Organisation for Oil Industry and Trade, the Government is currently examining the legal and other implications of stopping import of soyabean oil crushed out of GM soyabean.

Mr Chhabra told Business Line, ``we have for some time been pushing for a reasonable and legally valid restriction on soyabean oil import in order to save the domestic farmers and industry. The Government needs to speed up its decision making so that our soyabean farmers are saved from certain ruination''.

In the last Union Budget, with a view to protecting the domestic oilseed farmers and processing industry from unfair competition from cheaper imported goods, the Government raised the customs duty on import of all vegetable oils to 75 per cent and above; but the duty on soyabean oil was pegged at a low 45 per cent because of an earlier commitment at the time of GATT (General agreement on Trade and Tariff) negotiations.

Following the huge duty differential between soya and other oils, large imports of the former took place. During oil year ended October 2001, soyabean oil imports into the country more than doubled to 14 lakh tonnes.

Asked about the rationale for seeking a ban on import of soyabean oil crushed out of GM beans, Mr Chhabra said, ``there are two reasons. First, under the law of the land, import of genetically modified products is prohibited, except with a license issued by the Government. Obviously, current imports which, there are strong reasons to believe, are not produced out of pure, non-GM seeds are in violation of the law''

The second, and more important, reason according to Mr Chhabra is that the bound rate of 45 per cent under GATT was negotiated years ago in a specific context or environment when GM products were not commercially traded on any significant scale.

``With the emergence of GM beans in the last 2-3 years, the situation has altered both qualitatively and quantitatively. We need to re-interpret the earlier agreement and re-negotiate the bound rate'' the industry official argued.

The apex body has already moved the Government on this issue and is hopeful of a favourable outcome, he pointed out.

Some industry watchers blamed the official machinery such as the Customs department and the Port Health Organisation for lax implementation of the law on GMOs.

These monitoring bodies are ill equipped both in terms of facilities and knowledge to detect products with GM traits.

Interestingly, Malaysia seems to have turned jubilant over the prospect of India imposing some kind of restriction on import of soyabean oil.

As the world's largest producer of palm oil, Malaysia has seen its share of the world's largest import market for vegetable oils_ India_ slipping out of it hand because soyabean oil enjoys duty advantage.

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