The Hindu Business Line : Plea to impose import duty on palm group of oils

Mumbai, Dec. 19 The Solvent Extractor Association (SEA) has urged the Government to impose import duty of 30 per cent on palm oil, 37.5 per cent on RBD palmolein and 30 per cent on crude sunflower oil, besides raising duty on refined soyabean oil to 27.5 per cent from 7.5 per cent to ensure farmers interest.

“Sunflower seed is currently being sold below MSP (minimum support price) at about Rs 1,925-1,950 a quintal in Vidarbha compared with Rs 2,215, while groundnut-in-shell is quoted at Rs 2,050-2,200 a quintal close to MSP of Rs 2,100 in Saurashtra,” said Mr Ashok Sethia, President, SEA.

The fall in prices affect the livelihood of farmers and discourage them from growing oilseeds or constrain the use of fertilisers thereby adversely affecting the oilseed productivity and production, he added.

The association has also wanted the Government to remove stock limit imposed by some States on oilseeds and oils. “The decision to lift the stock limit will stabilise the falling market and support farmers to receive remunerative price,” he added.

Mr Sethia also expressed concerns over reports that due to sharp drop in the commodity prices, the Government may look again to apply Abhijit Sen’s formula for MSP. “The farmers are already suffering due to price crash and failure to increase reasonable MSP for the current rabi season for rape/mustard would send the negative signals and discourage the farmers,” he said.

contracts defaults

The association has begun the process of collecting data on non-performing contracts and urged members to provide it with details. India exports oilmeals mainly to South East Asian countries.

“We understand from the members that some overseas buyers have not opened the LCs due to banking problem or fall in price of oilmeals. Members have requested the association to take up these issues with the concerned local associations or the Government of those countries,” it said.

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Plea to impose import duty on palm group of oils