Indore (Madhya Pradesh): A delegation led by Dr Davish Jain, Chairman of Soybean Processors Association of India (SOPA), met Union Agriculture Minister Shivraj Singh Chouhan to discuss concerns regarding the influx of cheap imported edible oils. Dr Jain expressed serious concerns about harmful effects of these imports on domestic edible oil industry and oilseed farmers.
He presented a memorandum urging the government to reinstate import duties and agricultural cess on edible oils to the levels from three to four years ago, to achieve self-sufficiency in edible oil production. Dr Jain highlighted the significant impact of cheap imported edible oils on domestic industry, noting that India's edible oil imports surged from 13.068 million tons in 2021 to 15.837 million tons in 2023, which is a concerning increase.
He emphasised that low import duties and high domestic taxes have rendered domestic products uncompetitive. Cooking oil is now selling at a 40pc higher rate than fuel. Addressing this imbalance is crucial. Dr Jain called for changes in the current import duty structure to provide a level playing field for domestic producers.
Dr Jain also urged the Agriculture Minister to implement ‘Bhavantar Scheme’ nationwide, ensuring that farmers receive fair prices for their produce without the compulsion of significant physical procurement. He noted that soybeans, mustard, peanuts and sunflower seeds are being sold below minimum support price (MSP), forcing farmers to switch to other crops. Establishing the right balance is essential for achieving self-sufficiency in oilseed production.
The SOPA chairman argued that increasing import duties would boost the country's revenue and encourage domestic production. He also pressed for the immediate launch of a national mission on edible oils to promote oilseed production nationwide. Dr Jain suggested that the government could work with organisations such as SOPA to develop high-yielding varieties and improve oilseed production. He also requested freight subsidies for soybean meal exporters to boost exports and generate foreign exchange for the country.
He appealed to the Agriculture Minister to collaborate with organisations like SOPA to create suitable policies for the oilseed sector, taking into account the interests of farmers and processors, to achieve self-sufficiency in the edible oil sector expeditiously. The SOPA chairman said that the Agriculture Minister acknowledged issues and concerns raised by SOPA and assured that appropriate measures would be taken. SOPA's executive director D N Pathak was also present in the meeting.
