By Nayan Dave
Gujarat based mostly edible oil mills are passing by lean interval as out of virtually 400 mills throughout the state, hardly round 55 are operational and relaxation are ready for the kharif oilseeds crop to hit the market.
“It is difficult to run an edible oilseed crushing unit as prices of imported oils are much lower than locally produced oils including groundnut, cottonseed oil, mustard oil etc. Moreover, stocks of oilseeds have almost exhausted. Most of the mills are likely to remain shut till the arrival of kharif oilseeds crop,” says Kishor Viradiya, president of Saurashtra Oil Mills Association (SOMA), an apex physique of oil millers in Gujarat.
If the present development continues for an extended time frame, not solely oil mills however oilseeds growers may even not be capable of get good charges of their produce, says Samir Shah, president of Gujarat State Edible Oils and Oil Seeds Association (GEOA). Shah who can be previous president of SOMA says that as a consequence of varied worldwide components charges of edible oils had gone up significantly, particularly imported oils earlier this yr.
“With a view to curb rising prices of edible oil, the Government of India reduced import duty on edible oils. Considering the fact that India is producing hardly 30 percent of its edible oil requirement, the decision was right at that point of time. Now when international prices of edible oils have gone down by 15 percent to 25 percent and high production period has started in edible oil exporting countries, the government should gradually increase import duty to protect local oil mills and oilseeds growers,” mentioned Shah. GEOA has additionally made illustration earlier than Union Minister for Commerce & Consumer Affairs, Piyush Goyal to extend import responsibility.
In June import responsibility on edible oils was starting from 35 to 55 p.c, since then the federal government step by step decreased import responsibility and at current it’s starting from zero p.c to fifteen p.c on totally different edible oils, he mentioned.
Just a month again costs of edible oils have been by the roof and the federal government took applicable measures by lowering import responsibility with the intention to defend shoppers, says Atul Chaturvedi, president of Solvent Extractors Association of India (SEA). “Prices of edible oils are coming down globally. Kharif sowing has already started across the country. In the interest of local farmers, it is high time to enhance import duty in a phased manner to encourage local edible oil value chain,” opined Chaturvedi.
On Thursday imported Palm oil costs have been at round Rs 2100 per 15 kg as in opposition to native Rs 2700 and Rs 2550 of groundnut and cottonseed oils. Prices of different native oils together with ricebran, coconut, soyabean and mustard remained as excessive as Rs 2350, Rs 2520, Rs 2500 and Rs 2580 respectively.
India imports round 13-13.5 million tonnes of edible oils, of which round 8-8.5 million tonnes (round 63 per cent) are palm oil. Though the value of different imported Sunflower oil remained at round Rs 2700 per 15 kg, however import amount of the oil is far decrease than that of palm oil.
Source: www.financialexpress.com”