The Hindu Business Line : Exclude edible oils from free trade pacts: COOIT

The apex body has urged the Government to fix a minimum value addition norm of 45 per cent to create a level playing field for the indigenous sector.

Mumbai , June 29

GIVEN the vulnerability of the country's agriculture in general and oilseeds cultivation in particular, in order to safeguard the livelihood concerns of our farmers, the Government must exclude the vegetable oil sector from international free trade agreements, industry leaders have argued.

Following a meeting with Mr Kamal Nath, Commerce Minister, the New Delhi-based Central Organisation for Oil Industry and Trade in a representation has urged the Government to fix a minimum value addition norm of 45 per cent to create a level playing field for the indigenous sector, if exclusion of edible oils from FTA/PTA was not feasible .

The apex body has pointed out to the Minister that the livelihood of millions of farmers was at stake and that the country's import dependence in respect of vegetable oils was at an alarming 50 per cent.

Making a demand for negotiating an upward revision in customs duty on soyabean oil (currently at WTO-bound peak of 45 per cent), the organisation said yields in major supplying countries have increased with the introduction of genetically-modified soyabean, giving such countries added advantage.

In India, oilseeds are cultivated in about 260 lakh hectares, mostly by small and marginal farmers without assured irrigation facilities and largely dependent on monsoon. India is world's largest importer of edible oil (51 lakh tonnes in 2002-03).

Mr K.M.L. Chhabra, Executive Director, told Business Line that the Commerce Minister appreciated the concerns of the domestic industry and was fully seized of the implications unfettered trade agreements may have on the domestic sector.

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