Edible oil industry disappointed with this Budget decision

Edible oil industry body SEA on Wednesday said the government should provide adequate funds for achieving its target to boost domestic production of oilseeds but expressed disappointment that import duties on cooking oils were not increased in the Budget.

In her budget speech on Tuesday, Finance Minister Nirmala Sitharaman said, “For achieving self-sufficiency in pulses and oilseeds, we will strengthen their production, storage and marketing.”

Reacting to the Budget proposal, Solvent Extractors' Association of India (SEA) President Ajay Jhunjhunwala said, “We congratulate the government for announcing the National Mission for Edible Oils focussing on key oilseeds like mustard, groundnut, sesame, soybean, and sunflower.” This initiative encompasses crucial aspects such as research for high-yielding varieties, the widespread adoption of modern farming techniques, establishment of market linkages, procurement, value addition and crop insurance, he said in a letter to the members of the association.

However, the SEA President rued that import duties on cooking oils were not hiked.

“We are a bit disappointed by the fact that no announcement has been made on increasing import duties on edible oils as well as raising the duty difference between crude oils and refined oils to a minimum of 15 per cent,” Jhunjhunwala said.

He said the association has been requesting the government to increase import duties on edible oils to help incentivise oilseed farmers, “but it seems it has missed the attention of the Finance Minister”.

“The domestic refining industry has been suffering due to heavy imports of refined edible oils which is contrary to our Prime Minister’s ‘Make in India’ dream. The capacity utilisation of our refining industry is suffering very badly and also resulting in loss of employment opportunities,” Jhunjhunwala said.