Stating that tariff price quota (TRQ) for import of crude soyabean and sunflower oils may disturb clean provide chain of edible oils, trade physique SEA on Thursday demanded that the federal government, as an alternative of implementing TRQ system, scale back the import obligation to zero on these two key cooking oils until September.
TRQ is a quota for a quantity of imports that can enter India at specified or nil obligation, however after the quota is reached, the conventional tariff applies to further imports.
On May 24, the federal government had notified TRQ of 20 lakh metric tonne of crude soybean oil and crude sunflower oil every for 2022-23 and 2023-24.
“The intention of the government in introducing TRQ is to increase supply and help moderate prices in the country, but it may end up squeezing imports,” Mumbai-based Solvent Extractors Association of India (SEA) President Atul Chaturvedi stated in a letter written to Food Secretary Sudhanshu Pandey.
The precise impact of TRQ out there place will solely be felt after 2-3 months of its implementation. In the intervening interval, costs of edible oils have the potential to rise as competition season in India begins shortly and consumption additionally goes up as soon as rain units in, he stated.
“To have immediate impact, it may be worthwhile to simply reduce duties on these oils immediately to achieve the desired objective,” he added.
Chaturvedi additionally famous that the federal government is binding itself by issuing TRQ of 40 lakh tonne of soyabean and sunflower oil. “In case prices fall in the international market, a likely scenario, we would have trouble in increasing import duties and this may affect domestic oilseeds prices,” he stated.
Against this backdrop, the SEA President advised that the federal government might scale back import obligation on these two edible oils to zero in the meanwhile until September as an alternative of issuing TRQ.
“This will have a salutary effect on domestic edible oil prices. Government may review the situation in September and take suitable call basis oilseed production in kharif,” he stated.
He additionally stated international oil costs are underneath strain and Indonesia has additionally been pressured to concern export licences as their storage tanks are full. If the federal government reduces import obligation on solely soyabean and sunflower oils then that can guarantee palm oil costs transfer southwards and affect full edible oil complicated in India.
India depends on edible oil imports to satisfy greater than 60 per cent of its home demand. In previous few months, the federal government has taken sure steps like progressively lowering import duties to maintain edible costs in test.
Source: www.financialexpress.com”