SEA pitches for zero import duty on soyabean, sunflower oils till Sep instead of TRQ system

Stating that tariff rate quota (TRQ) for import of crude soyabean and sunflower oils may disturb easy provide chain of edible oils, business physique SEA on Thursday demanded that the federal government, instead of implementing TRQ system, scale back the import duty to zero on these two key cooking oils till September.

TRQ is a quota for a quantity of imports that may enter India at specified or nil duty, however after the quota is reached, the conventional tariff applies to further imports.

On May 24, the federal government had notified TRQ of 20 lakh metric tonne of crude soybean oil and crude sunflower oil every for 2022-23 and 2023-24.
“The intention of the government in introducing TRQ is to increase supply and help moderate prices in the country, but it may end up squeezing imports,” Mumbai-based Solvent Extractors Association of India (SEA) President Atul Chaturvedi stated in a letter written to Food Secretary Sudhanshu Pandey.

The precise impact of TRQ within the market place will solely be felt after 2-3 months of its implementation. In the intervening interval, costs of edible oils have the potential to rise as pageant season in India begins shortly and consumption additionally goes up as soon as rain units in, he stated.

“To have immediate impact, it may be worthwhile to simply reduce duties on these oils immediately to achieve the desired objective,” he added.
Chaturvedi additionally famous that the federal government is binding itself by issuing TRQ of 40 lakh tonne of soyabean and sunflower oil. “In case prices fall in the international market, a likely scenario, we would have trouble in increasing import duties and this may affect domestic oilseeds prices,” he stated.

Against this backdrop, the SEA President urged that the federal government could scale back import duty on these two edible oils to zero for the time being till September instead of issuing TRQ.

“This will have a salutary effect on domestic edible oil prices. Government may review the situation in September and take suitable call basis oilseed production in kharif,” he stated.

He additionally stated world oil costs are below strain and Indonesia has additionally been pressured to difficulty export licences as their storage tanks are full. If the federal government reduces import duty on solely soyabean and sunflower oils then that may guarantee palm oil costs transfer southwards and influence full edible oil complicated in India.

India depends on edible oil imports to satisfy greater than 60 per cent of its home demand. In previous few months, the federal government has taken sure steps like progressively lowering import duties to maintain edible costs in test.

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