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Edible oil imports are expected to fall 5 per cent to 14.3 million tonnes against 15.07 mt logged last fiscal year due to expectations of a higher crop this kharif season. The fall in imports is part of Central government measures to curb imports and boost domestic crushing.
BV Mehta, Executive Director, the Solvent Extractors Association of India, said that domestic crushing of oilseed is expected to improve as the area under coverage has also increased substantially, with the Centre announcing an attractive minimum support price.
Moreover, the Centre has increased the import duty on crude edible oil to 15 per cent from 7.5 per cent. The importy duty on refined oil was hiked to 25 per cent from 15 per cent.
In March, the government had raised the import duty on crude palm oil to 44 per cent from 30 per cent and on refined palm oil to 54 per cent from 40 per cent.
Besides the duty hike, the weak rupee has also dampened edible oil imports, he said on the sidelines of an event to announce the launch of the 22nd edition of Globoil, a three-day industry event, which begins on September 26.
Vegetable oil imports were down 27 per cent in July at 11.19 lakh tonnes against 15.24 lakh tonnes logged in the same period last year. The country imported 10.53 lakh tonnes of edible oils and 65,825 tonnes of non-edible oils.
Atul Chaturvedi, CEO (Agri Business), Adani Wilmar, said the move to curb imports and boost domestic crushing would increase farmers’ earnings, particularly when they expect a bumper crop.
The curbs have not pushed up edible oil prices as globally prices are down and domestic consumption has also come down marginally, by 2 per cent, he added.
Boost for farmers
Sandeep Bajoria, Chairman, Globoil Advisory Committee, said the announcement of a higher MSP has given a fillip to farmers’ sentiment after being forced to sell their produce 40-50 per cent below MSP last year.
The Prime Minister’s vision to double farmers’ income can happen in the edible oil sector with a proper rollout of MSP operations and a little support to the domestic oilseed crushing industry, he said.
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