support@headlinenews360.com
Budet Expectations 2025: Edible oil industry body, SEA on Tuesday asked the government to regulate the import of refined edible oils, restrict import consignments of finished products like soap and noodles coming into the country duty free and impose 5% on de-oiled rice bran. Urged to impose 100% GST.
In its pre-Budget memorandum submitted to Finance Minister Nirmala Sitharaman, the Solvent Extractors Association of India (SEA) proposed ‘National Mission on Edible Oils’ (NMEO) with increased financial assistance to boost oilseed production and reduce import dependence. Emphasized the need to start over.
It said the NMEO needs to be implemented with a minimum outlay of Rs 25,000 crore for the next five years as against the current Rs 10,000 crore to reduce the country’s dependence on imported oils from the current level of 65 per cent to 25 per cent by FY 2029-30. Can be reduced to -30 percent.
“We need to invest heavily in MSP support, farmer education, seeds, farming practices and machinery, soil weather forecasting and storage as well as modernization of the processing industry,” SEA said.
Expressing concern over the rising imports of refined palm oil, SEA said the Indian palm refining industry is suffering from very low capacity utilization and is turning into mere packers due to cheap imports of RBD palmolein from Indonesia and Malaysia.
Also read:
The industry body demanded increase in import duty on RBD palmolein from the current 12.5 per cent to 15 per cent without any change in crude palm oil duty.
It also demanded higher import duties on crude and refined oils to boost overall oilseed production and reduce imports.
SEA called for curbing mass imports of finished products such as soap and noodles from Southeast Asian countries, mainly Malaysia, Indonesia and Thailand.
It said the government should include import of finished products like stearic acid, soap noodles, oleic acid and refined glycerine in the list of restricted items. SEA also demanded duty-free import of all essential raw materials for oleochemical companies and a uniform duty on all crude edible oils. At present, crude rice bran oil and crude pomace oil attract 35 per cent basic customs duty, while crude palm oil and crude soybean oil have different rates.
The industry body demanded imposition of 5 per cent GST on de-oiled rice bran to create buffer stock for soybean, promote value-added soybean products and reduce misuse. The raw material ‘rice bran’ attracts 5 per cent GST, while the finished product de-oiled rice bran attracts no duty.
SEA also demanded incentives for oilmeal exports, regulation of corn-based ethanol prices so that DDGS (Distillers Dried Grains with Solubles) prices remain stable so as not to impact domestic consumption of oilmeals like soya and rapeseed.
It urged the government to encourage private participation in oilseed extension programs and provide monetary assistance for setting up model farms.
