| Date: |
15-12-2015 |
| Subject: |
Edible Oil traders want import duty hike, Oilseeds Development Fund to boost local supply |
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KOLKATA: The edible oil industry has urged the government to increase the import duty on both crude and refined oil, along with setting aside a portion of the revenue earned to set up an Oilseeds Development Fund to increase domestic production.
The move comes at a time when the domestic consumption is increasing at a rate of 8 per cent and the import on account of oil has crossed Rs 65,000 crore in the year ending October 31. In the current oil year that kicked off on November 1, the import bill is likely to be Rs 75,000 crore as India will have to import more since local production went down this kharif season.
India is likely to import 155-160 lakh tonnes of edible oil this year, compared to 144 lakh tonnes the last time round. In November, the import went up 13 per cent from a year ago. "This year, we have seen what has happened with pulses. There is enough supply of edible oil globally which is helping us meet our demand. But this situation may reverse anytime," said Anghsu Mallick, chief operating officer of Adani Wilmar, which sells oil under the brand Fortune.
Mallick said India needs to increase oilseeds production so that we become self reliant
The clamour for more protectionism from the edible oil industry is unjustified. The scope for procurement of edible oils from global markets, unlike pulses, is not limited. Indigenous oils command a premium. Consumer preferences will ensure that the market for this does not get hit. So, there is no evidence to show that domestic industry suffered distress due to imports. But, India needs to raise productivity and yields in edible oils.
Source : economictimes.indiatimes.com
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