PUNE: Indian soyameal exports have been rendered noncompetitive due to the appreciation of the Indian rupee and heavy influx of imported edible oil, claimed the soyabean processing industry. They have demanded an increase in customs duty on import of edible oil.
However, the rest of the edible oil industry thinks the government may not be willing to accept this demand now. “We have bumper soyabean production of 141lakh tonnes in kharif 2016 and bumper production of other edible oils.
In spite of this, import of edible oils has remained at the previous year’s level of 140 lakh tonnes,” claimed Soyabean Processors Association of India (SOPA), in a letter addressed to various ministries of the central government.
Davish Jain, president, SOPA, said, “The margins of soyabean processors from edible oils have declined as domestic price of soyabean oil has fallen by 15% in the last one month. This, coupled with the 4% appreciation of Indian currency, had rendered the export of soya meal in dollar terms noncompetitive.”
Solvent Extractors Association of India (SEA) said the import of vegetable oils in the first four months of current oil year 2016-17 is 8% less, due to a good kharif oilseed crop and thus better domestic availability of edible oils.
“Currency crunch due to demonetisation slowed purchases by end consumers during the first quarter of the year affected the demand and import,” said BV Mehta, executive director, SEA.
Source: economictimes.indiatimes.com