FNB News - SEA initiative to promote exports of oilmeals; to participate in trade shows

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SEA initiative to promote exports of oilmeals; to participate in trade shows

Friday, 27 May, 2016, 08 : 00 AM [IST]

Our Bureau, Mumbai

The Solvent Extractors Association of India (SEA) has undertaken an initiative to promote exports of oilmeals, which during financial year 2015-16 reduced to half from the previous year, according to a release issued by the association recently.

Further, apart from exports of oilmeals, the association has been highlighting several other issues affecting its members with the authorities concerned, informed Pravin S Lunkad, president, SEA, in the release.

Biodiversity Act, 2002
Exempting all oilseeds and its products from the purview of the Act, government had passed the Biodiversity Act, 2002, to conserve biological diversity of the country and sustainable use of its products like medicinal plants. However due to certain ambiguities in the Biodiversity Act, 2002, many members of the association, processing / crushing oilseeds / rice bran received the showcause notice to pay the cess under the Act.

In this regard, the association strongly pleaded with the ministry of environment, forests & climate change that oilseed crop was an annual cultivated crop. Also, oilseeds and its products are normally traded commodities having sustainable growth and should be out of purview of the Act. “Our last three years persuasion ended in positive action. Our plea has been accepted and the Notification No. S.O.1352(E) dated April 7, 2016, issued by the ministry of environment, forests and climate change covering oilseeds under exemption list. The notification further clarifies that the products that are derived from the items listed in the said notification and traded as a matter of common practice shall also be treated as normally traded as commodities and exempted and in such cases, the onus of substantiation that the said products fall within common practice, shall lie on the claimant. We thank Prakash Javadekar, minister of state (independent charge) for ministry of environment, forests & climate change for understanding our issue and exempting oilseed sector from the purview of the Act.”

Sharp increase in RBD Palmolein Import by over 225%
The alarming increase in import of RBD Palmolein is seriously hurting the domestic refining industry. The import of RBD Palmolein during the first five months of the current oil year i.e. from November 2015 to March 2016 jumped by over 225% from 3.05 lakh tonne to 9.97 lakh tonne and expected to increase further in the coming months. This situation has arisen due to the fact that currently the landed cost of RBD olein (finished product) is lesser than Crude Palm Oil (CPO - raw material). Due to this situation, the domestic refining industry is facing severe crisis of under utilisation of capacity and is on the verge of closure and justify to increase in duty difference between crude and refined vegetable oils from 7.5% to 15%. SEA is strongly pursuing this matter and hoping to have some positive decision shortly from the government.

Exports of oilmeals
Exports of oilmeals during Financial Year 2015-16 reduced to half from the previous year (2014-15) and 1/4th of Financial Year 2013-14. In terms of quantity, it reduced from 43.8 lakh tonne in 2013-14 to 11.8 lakh tonne in 2015-16 and in value terms from Rs 11,500 crore in 2013-14 to just Rs 1,500 crore in Financial Year 2015-16. In the last two years, we lost traditional markets like Iran, shifting to other origin, Vietnam switching from import of soya meal to import of bean, Japan switching over to GM soybean meal and also our neighbouring countries like Pakistan and Bangladesh moving to import of soybean from soyabean meal affecting our export seriously.”

In view of this grave situation on export front, SEA has decided to step up its efforts to explore the new markets like Africa, the Middle-East and certain developing countries in Asia by participating in various feed exhibitions and deputing trade delegations. To start with, SEA plans to participate in the trade fair in Tanzania, which is to be held between July 12 and 14, 2016, and also considering to depute a techno-commercial delegation to East African countries like Kenya, Uganda, Ethiopia and Rwanda sometime during middle of July to explore these markets. The association will shortly issue a circular inviting members to participate in the delegation and also in the exhibition.

SEA participation Indian Trade and Investment for Africa programme
“International Trade Centre, (ITC), Geneva, of United Nations organised 5th Partnership Platform Meeting on “Supporting Indian Trade and Investment for Africa” (SITA) from April 28 to 30, 2016, at Kampala, Uganda, and had invited Dr V S Vadke, jt convener, SEA technical sub-committee; Dr BV Mehta, ED, SEA; and me at this forum to talk about the technology transfer for oilseed and oil processing industry, study the potential for the import of oil, oilseed and oilcake and possibility of exporting edible oils and other agro products from India to these countries. This conference was participated by about 100 delegates from Uganda, Tanzania, Rwanda, Ethiopia and other African countries. SEA signed Letter of Intent (1) Tanzania Sunflower Processors Association (TASUPA), (2) Tanzania Edible Oils Seeds Association (TEOSA) and (3) Uganda Oilseed Producers and Processors Association (UOSPA), for closer co-operation between SEA and these associations for B to B business opportunity.”

Online submission of statutory monthly return to VOP directorate under VOPPA Act 2011
“We have been once again reminded by directorate of vanaspati, vegetable oils & fats, New Delhi, that it is obligatory for all solvent extraction, vegetable oil refinery and vanaspati units to file line monthly returns to directorate under VOPPA Act 2011. However, many members are not filing online monthly returns to directorate. Members are once again advised to file the monthly returns to directorate without fail, failing which directorate may initiate action under VOPPA Act 2011 including ordering of closure of your unit. Its in your interest to submit the returns to directorate to avoid any inconvenience at later stage.”

SEA – RSPO Workshop
SEA jointly with India Chapter - Round Table On Sustainable Palm Oil (RSPO) organised a successful Workshop for Introduction to Certification Process under RSPO. It was held at Mumbai on May 16, 2016. It was very well attended and had very lively discussion to understand Certification of Process. “I compliment Jan Van Driel, head of certification for RSPO, and other speakers for their excellent presentation. I also compliment Yogesh Kolte, India manager, RSPO, and SEA team for successfully organising this type of workshop first time in India.”

Global Grain, Food & Feed (G2F2) 2016 - June 9 to 11, 2016, Pune
Tefla’s in association with SEA as a chief patron is organising Global Grain, Food & Feed (G2F2) 2016 from June 9 to 11, 2016, at JW Marriott, Pune. This conference is expected to bring various regional stakeholders together, the 3-day event will crystal gaze into the future and attempt to throw light on issues that market participants keep raising.

G2F2 is an international platform aimed at discussion of the global trends in agricultural market, exchange of progressive initiatives and establishment of international cooperation. “Whatever your role is in the food & agri supply chain – be it primary producer, processor, trader or retailer – you face interesting times, with opportunities and challenges ahead. I would like to appeal to the members who are associated directly or indirectly with feed business to participate and avail the opportunity to enhance your knowledge and expertise.”

Indian Monsoon
Earlier, India Meteorological Department (IMD) had forecasted above normal Southwest Monsoon and expected it to arrive by June 1 in Kerala. However, now they have revised their forecast delay by six days and it would arrive around June 7. Although the onset of monsoon is forecast to be delayed, its overall impact on the progress and performance is difficult to predict as of now. Skymet, a private forecasting agency, in its forecast for the onset of monsoon had said that monsoon would hit Kerala between May 28 and 30.