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The Solvent Extractors Association of India (SEA) has urged the government to increase the import duty difference between CPO (crude palm oil) and RBD palmolein to 15 per cent from the current level of 7.5 per cent.
Ajay Jhunjhunwala, President of SEA, said the association had a meeting with Sanjeev Chopra, Secretary of the Union Department of Food and Public Distribution, in New Delhi on Thursday.
He said the SEA told the Secretary that mustard farmers are disappointed as mustard is being sold below MSP (minimum support price) in agricultural produce marketing committee (APMC) yards. That could reflect in the reduction in the area of the mustard crop in the ensuing season.
‘Check imports’
Considering the present scenario of prices of edible oil, the inverse international market for future months, comfortable stock of indigenous edible oils and prevailing rates of mustard — that is below MSP — creating distress in farmers, SEA urged that import duty on all edible oils be raised immediately.
He suggested that the duty difference between CPO and RBD palmolein be raised to 15 per cent from current level of 7.5 per cent to check the excessive import of RBD palmolein into India to safeguard Indian refining industry.
He said the Department of Food and Public Distribution had a discussion with SEA on the current edible oil prices in the country. The department, which said the international price of edible oils has reduced sharply in the last 3-4 months, informed the meeting that domestic prices have not sufficiently declined in line with falling international markets. “We have conveyed that most of the major brands have reduced the prices of edible oils over the last few months in line with the falling international market,” Jhunjhunwala said, adding, SEA had advised its members to reduce maximum retail price (MRP) and wholesale price of edible oils a few days back.
Stating that SEA has again issued an advisory to its members appealing to them to reduce the MRP and also wholesale price of edible oils in line with prevailing market scenario, he said members have responded favourably and started announcing further reduction in MRP and wholesale price of their brands of edible oils.
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