SEA calls on Indian government to regulate imports of refined edible oils

On Tuesday, the edible oils industry association of India (SEA) urged the government to regulate imports of refined edible oils and restrict duty-free supplies of certain finished products.

In a budget memorandum submitted to Finance Minister Nirmala Sitharaman, SEA emphasized the need to launch the National Mission for Edible Oils (NMEO) with enhanced financial support to increase oilseed production and reduce dependence on imports. The SEA has demanded an expansion of funding for the implementation of the NMEO to Rs 25,000 crore ($2.897 billion) over the next five years from the current Rs 10,000 crore ($1.158 billion), aiming to reduce the country’s dependence on oil imports to 25-30% from the current level of 65%.

“We need to invest heavily in farmer training, seeds, farming methods and machinery, weather forecasting and soil conservation, and modernization of the processing industry,” the SEA said.

Expressing concern over the growth of refined palm oil imports, the SEA noted that the Indian refining industry is suffering from extremely low capacity utilization and is turning into mere packers due to cheap imports from Indonesia and Malaysia. The industry body has demanded an increase in the import duty on RBD palm oil from the current 12.5% to 15%, as well as the establishment of uniform import duties on crude and refined oils. At the same time, SEA insists on duty-free imports of raw materials for the oleochemical industry.

The Association paid special attention to stimulating the export of meal that does not harm domestic consumption and regulating prices for corn-based ethanol. SEA also urged the government to encourage private partnerships in oilseed production expansion programs and provide financial support for the creation of model farms.

Earlier it was reported that in December, India reduced the import of edible oils by 25% to the 3-month low of 1.19 mln tonnes, while the import of palm oil decreased by 40% to the 9-month low of 503 thsd tonnes.

Tags: edible oils, restrictions, India, palm oil, imports