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Our Bureau

Kochi, Feb. 10 The Solvent Extractors Association of India has appealed to the Centre to review the restrictions imposed on import of palm products through ports of Kerala.

The association President, Mr Ashok Sethia, pointed out that the ban would not benefit coconut farmers in Kerala, given the State’s low coconut output at around 7,000 nuts per hectare.

Coconut output in Tamil Nadu was 13,000 nuts per hectare and the need of the hour was efforts to enhance coconut output, he added.

Outlining issues concerning vegetable oil industry, the association said Government should encourage oilseed cultivation in irrigated areas and provide technical inputs at the grassroots level to improve yield.

It also called for creating an Oilseeds Development Fund on the lines of Sugar Development Fund to increase local production of oilseeds to meet the increasing demand for edible oils.

Alternatively, it suggested that the Government should allocate more funds for oilseed production to reduce dependency on import of edible oils.

Mr Sethia pointed out that the import bill for vegetable oils was likely to touch Rs 12,000 crore this year and cross Rs 15,000-20,000 crore next year as international prices have risen 70-80 per cent during the past year.

The association’s executive director, Mr B.V. Mehta, suggested that the Central Government should prevail upon state governments to levy uniform rate of VAT on oilseeds and their derivatives.

Under the uniform floor rates of sales tax, state governments have imposed 4 per cent on oilseeds compared to the 1-2 per cent levied in most states prior to April 1, 1999. Steps should be taken to place oilseeds, oilcake, rice bran and its derivatives in the category of 1 per cent VAT, he said.

He also suggested declaring oil palm as ‘plantation crop’ to attract foreign investment in oil palm cultivation.

More Stories on : Oilseeds & Edible Oil | Exports & Imports | Kerala

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