The government has set the limit for sale of sugar by mills at 2.0 mln tn in February, lower than the 2.15 mln tn set in January, according to a notification. The government has raised the base import prices of all edible oils, barring crude palm oil, by $2-$41 per tn, the Central Board of Excise and Customs said in a notification. The government will implement a comprehensive scheme to increase domestic production of oilseeds to reduce the country's dependence edible oil imports, according to the Union Budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha.Oilseed output in the 2020-21 (Jul-Jun) was pegged at 36.1 mln tn in the fourth advance estimates released by the farm ministry in August, and according to data by Solvent Extractors' Association showed that import of edible oil for 2020-21 (Nov-Oct) was at 13.1 mln tn. Implementation of a rationalised scheme to increase production of oilseed in India is a positive decision taken by the Centre, given that the country, being the largest importer of edible oils worldwide, has been heavily reliant on other nations for its edible oil needs. The decision taken by the Centre was much needed, given that palm oil and soybean prices have been skyrocketing in Malaysia and the South American nations of Brazil and Argentina because of concern regarding low output. However, a major reduction in oilseed import is unlikely, since this is an elaborate scheme and it will take some time for its effective implementation. As of now, no major change in prices of oilseeds is expected in the domestic markets for the next few months.
Source:moneycontrol.com