May 18, 2024


Make Every Business

Oilseed sector seeks fresh policy impetus from Centre

With the country’s dependence on edible oil import reaching 70 per cent, the sector wants the Govt to give thrust on increasing output and productivity of oilseeds in the region in the forthcoming Finances.

BV Mehta, Government Director of Solvent Extractors’ Association (SEA) of India, told BusinessLine that the affiliation wants the government to give focus on increasing the output and productivity of oilseeds in the Finances.

Some of the solutions incorporated shifting of acreage from grains to rape-mustard in Punjab and Haryana. Stating that the oilseed output is stagnant at all-around 28-thirty million tonnes per annum with a productivity of all-around 900-1,000 kg/ha, he stated there is a have to have to focus on increasing the productivity to 1,five hundred kg/ha.

Closing hole

Urging the have to have to operationalise NMEO, he stated it will enable curb the hole amongst domestic need and output of edible vegetable oils. SEA has requested an allocation of ₹4,000-five,000 crore per annum with special focus on crops these kinds of as mustard, groundnut, soyabean and oil palm.

SEA experienced instructed levy of an ‘Oilseed Development Cess’ of ₹2,five hundred-3,000 per tonne on imported edible oils. This would deliver a revenue of ₹4,000 crore per annum. This would fund the NMEO with no more budgetary help.

Change acreage

SEA has instructed the diversion of some land holdings in Punjab-Haryana location from wheat and rice output cycle to soya, sunflower and maize in kharif and rape-mustard seed in rabi period.

All-around 60 lakh hectares of land is earmarked for wheat cultivation in Punjab-Haryana location. If 50 per cent of the available land is shifted to mustard cultivation by 2025, the region could get extra 60 lakh tonnes of rape-mustard. This would translate into 25 lakh tonnes of extra oil, Mehta stated.

Import of refined oil

Sudhakar Rao Desai, President of Indian Vegetable Oil Producers’ Association (IVPA), requested the government to categorise the import of refined oil from restricted to prohibited listing underneath the foreign trade policy perspective of the refining capability available in India.

He stated the Tailor made Responsibility on different crude edible oils is billed as tariff value notified by CBIC on a fortnightly basis. However, the exact same does not utilize for crude sunflower oil and custom made responsibility is levied at transaction value. He stated this is an anomaly to be corrected by introducing tariff value for sunflower oil like in other oils.


Some in the refining business also make biofuel as an allied business. However, the output has arrive down because of to the superior charges of edible oils. He requested the government to reduce the GST on biofuel from 12 per cent to five per cent, as this will really encourage itsthe usage and output of biofuel.


He stated the GST is compensated on money merchandise by the business, but is not allowed to be set off towards their gross sales. To relieve the liquidity crunch, he instructed that the stated GST compensated on money merchandise be allowed to be set off towards the gross sales manufactured by the business. This will considerably enable in cash flows of the business in the superior price tag environment, he stated.


If the edible oil is to be distributed in PDS (public distribution technique) because of to superior charges in the marketplace, it need to be acquired from the local refineries only because of to extra capability available in India, the IVPA President stated.

Alternatively, he stated, immediate subsidy to ration card-holders may be granted through a cash transfer technique so that the ration cardholders will be in a position to acquire directly from the marketplace as towards the provide of edible oils through current PDS stores. This will be uncomplicated to administer without having stock price tag challenges and without having distorting the operating of the marketplace-pushed aggressive charges, Desai stated.