SEA Appeals Government To Raise MSP For Oilseeds.

The Solvent Extractors Association of India has pledged the government to freely allow the exports of edible oil, which were banned 2 years back. India traditionally exports small volume of premium oils like coconut, sesame, mustard and groundnut either in consumer packs or in bulk basically to cater to the expats population.

The export of edible oils was freely allowed till March, 2008 both in consumer pack and in bulk and average export were ranging between 20,000 to 30,000 tonnes per annum. However, in March, 2008, the Government banned the export of edible oil in wake up of rising price of edible oil in the country and later allowed export of edible oil in consumer packs upto 5 Kg. with a ceiling of 10,000 tonnes per annum. The circumstances under which the ban on exports of edible oil was imposed are no longer existing.

The current domestic price of edible oil has gone down drastically since March, 2008 and import duty has been reduced to Nil & 7.5% on crude and refined oils respectively from the level of 40-75%. The export of edible oil if freely allowed is unlikely to reach 50,000 to 60,000 tonnes per annum, which is hardly 0.35% of the total edible oil consumption in the country.

However, it would help the domestic industry to re-capture the lost export market and also would give a positive signal to the farmers during the current sowing period and shall check the falling price of oilseeds, if any, during the harvesting season. Oilseeds and Oilmeals are freely exportable as such there is no justification or logic to restrict export of edible oil. In view of this, the Association has once again represented to Government of India to review the exports of edible oil policy and allow its exports freely both in consumer pack and in bulk as conditions under which the ban was imposed no longer exists.

The Solvent Extractors Association of India has said that the Government of India has given a step- motherly treatment to the oilseeds sector by raising the support prices for oilseeds by less percentage than the support prices for pulses.

Oilseeds and Pulses both are in short supply and need a greater support in the form of higher MSP to encourage their production in the country. We are greatly disappointed with the Government's decision to raise the support price for oilseeds by only 2 to 9 percent while raising 15 to 30% for pulses. It seems Government takes action only after the damage is done, as is apparent in case of Arhar where MSP has been increased by 30%.

Oilseeds production and acreage is going down/stagnant for the last 5 years and imports of oils have risen over 100% in the same period and reached at alarming level and is a threat to food security of the Nation. In fact last week, the Hon'ble Prime Minister at the convocation ceremony of G.B. Pant Agricultural University emphasised that Indian agricultural growth is the key to the Nation's food security and India must endeavour to raise the agricultural growth rate from around two percent per annum to four percent. India owns only two percent of the world land area and only four percent of its fresh water resources but has to support 17% of the world's population.

He further stressed that the modern technology should be used to increase the farm yields and called for reforms that will benefit small-scale and marginal farmers. Investment in the agricultural sector needs to be increased and the farmers need to be provided remunerative prices for their produce and better quality seeds and inputs. We would like to once again appeal to Hon'ble Prime Minister to reconsider the support price of oilseeds and raise it in line with pulses.


Source : India Infoline