Hit by poor demand from poultry sector and the lockdown triggered by the Covid-19 crisis, the soyabean processors have sought a stimulus package from the Centre.

About 60 per cent of the soyabean processed is used by the poultry sector, which has literally collapsed. As a result, there are not takers for soyabean meal and most of the production units are shut, said Davish Jain, Chairman, The Soyabean Processors Association of India (SOPA), in a letter to the Finance Minister, seeking a stimulus package.

Jain said the salaries and wages are being paid as mandated by the Government. However, without production and sale, and debt recoveries, there is no cash generation. “With no operations, no sale and no access to funds, the industry is starved of the money to pay,” Jain added.

Among other interventions, SOPA has sought a reduction in interest rates on all commercial loans and lowering of rates at which PF and ESIC is calculated. States may consider lowering the power tariff which would help the industry reduce its fixed costs. Also it has asked the Centre to advise the States to remove the APMC or mandi fee and encourage farmers to sell their produce directly to the processors.

SOPA has also sought an increase in working capital limits by 25 per cent in the form of a loan and a moratorium on the principal and interest payments for six months. It has also suggested that the Centre exempt soyabean and the DOC (de-oiled cake) from GST to revive demand from the poultry sector.

Further, SOPA has also urged the Government to increase the export incentive on soyabean meal to 10 per cent from the current 5 per cent to revive exports.

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