Commodity News
HeadLine : Edible oil trade bodies differ on import restrictions
Date : Aug 3 2020
Soybean Processors Association of India (SOPA) recently sought a quantitative quota and higher import duty for crude soybean and sunflower oils citing "unbridled and burgeoning" imports of edible oils in India - hurting interests of the farmers and processors. In its July 28 letter to the Union Commerce Minister Piyush Goyal, SOPA Chairman, Davish Jain said, "The oilseed and edible oil sector needs a complete make-over and shift in policy, aimed at drastically reducing edible oil imports and doubling the local production of oilseeds." He had suggested raising customs duty on crude soybean oil from 35 per cent at present to WTO-bound rate of 45 per cent and that on crude sunflower oil from 35 per cent to 50 per cent. SOPA has also suggested fixing quantitative import quota/limit for the two varieties of oils - crude soybean and sunflower oil at one lakh tonnes each per month during October to January period. Whereas for the remaining period, the quota limits may be fixed at 2.5 lakh tonnes and two lakh tonnes respectively. SOPA also pointed at an all-time high soybean oil imports at five lakh tonnes for July 2020. SEA, in response to SOPA's proposal, shot off a letter to the Union Commerce Minister expressing its objections. The solution lies in raising the import duty on all oils suitably and linking it with MSP to ensure that farmers get a price above the MSP from the market and Government agencies do not have to step in for market intervention operations, SEA stated.

Source : Business Line

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