SOMA reiterates demand for export incentives on groundnut

Ahead of the Union Budget presentation next month, groundnut processors have reiterated their demand for export incentives on groundnut meal.

The groundnut oil trade body Saurashtra Oil Mills Association (SOMA) is preparing a memorandum to be submitted to Finance Minister Nirmala Sitharaman with its budget suggestions and demands to make groundnut oil industry sustainable and remunerative for the growers and crushing units.

Demand for sops

“We have been demanding export incentives on groundnut meal. Also, we have suggested to the Centre to set up a separate peanut promotion council, which will work towards encouraging consumption of groundnut and its products to avoid a glut situation for the crop,” said Sameer Shah, President, SOMA.

According to industry players, European and other Western markets have strong demand for high-protein meal. The groundnut meal prices have remained subdued for the past couple of years. Other oilmeals get 7 per cent export incentive in the form of duty drawback, but groundnut oilmeal is kept out of the scheme.

SOMA has been pressing for a similar incentive for groundnut meal exports also. It had earlier raised the demand with the Union Commerce Ministry last year for incentivising groundnut meal exports.

Edible oil imports

SOMA has also expressed concern over India’s edible oil consumption being largely dependent on imports. “This eats up our forex reserves as currently about 65 per cent of our total edible oil consumption is dependent on imports,” said Shah, adding that there is a need to promote local edible oils and value-added products of peanuts, sesame and other local agri products.