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Govt examining possibility of increasing duty on edible oils
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Tuesday, 03 September, 2024, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Union Government is examining the possibility of increasing import duty on edible oils. According to market analysts, if such a decision is taken, the interests of indigenous oilseed producers, especially soybean, can be protected.
Currently, 5.5% duty is applicable on crude palm oil, soybean oil and sunflower oil and 13.75% duty is applicable on refined oil.
Traders suggest that Maharashtra Assembly election is approaching and Union Government fears a backlash from farmers if they do not get good remuneration of the locally produced oilseeds.
Also, since the Union Agriculture Minister is from Madhya Pradesh and MP is largest producer of soybean, there is pressure from farmers on him as well.
And it is learnt that the Union Agriculture Ministry has already proposed increasing the import duty on edible oils.
According to Shankar Thakkar, president, All India Edible Oil Traders Federation, soybean farmers were also not happy with the falling price of soybean.
"Unless the Customs duty is increased, it is difficult to encourage farmers to increase the production of oilseeds. Now the Central Government is also expected to announce a National Oilseed Mission of Rs 6,800 crore soon. In such a situation, the government can increase the import duty to set a good price for the local produce," said Thakkar.
He added that the arrival of new Kharif oilseed crops, especially soybean and groundnut will start from September, while the sowing of Rabi season oilseed crops, especially mustard will start from October.
He informed that soybean is improving anyway due to the increase in the price of palm oil in Indonesia. However, the sale in the market is weak even after the rise in prices.
Experts, meanwhile, suggested that the government should not take decisions only keeping the farmers in mind, but should also take inflation into account.
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