SEA demands funds for scaling up oilseed output

The Solvent Extractors' Association of India (SEA), in its pre-budget recommendation to the union government has urged for larger allocation of funds to scale up oilseed production in order to meet growing demand of edible oil and reduce dependency of imports.

"The domestic turnover of the vegetable oil industry is Rs 70,000 crore and the import export turnover is around Rs 15,000 crore per year, with 66 per cent import of edible oils and remaining export. Last year we had to import 50 lakh tonne edible oils to meet the current requirement. There is urgent need to encourage edible oil producers to enhance output, "said A R Sharma, president, SEA.

The association suggested grant of 200 per cent weighted income tax deduction to companies undertaking 'oilseeds extension programme'.

Sharma also said, "India has a potential to produce over 12 lakh tonne of rice bran oil per year against which its current production is estimated at 7 lakh tonne out of which refined rice bran oil is just 1.5-2.0 lakh tonne. There is an urgent need to exempt all by-products of this industry from the levy of excise to encourage and support production of refined rice bran oil in India."

Sharma further informed that currently India was importing 15,000-20,000 tonne of vanaspati every month from Malaysia and other countries at 30 per cent duty. In addition, crude palm oil, the basic raw material for manufacturing vanaspati is imported at a much higher 80 per cent duty.

"Since duty on the finished product is substantially lower than on imported raw material, indigenous vanaspati industry is under serious threat from import of cheap vanaspati," Sharma added.

SEA also urged the government to exempt food grade hexane, used in processing plants, from the purview of excise duty. Oilmeals export is earning over Rs 2,500 crore of foreign exchange every year, informed Sharma.

The association also urged the government to allow the oil seed crushers and processors to buy directly from farmers without any hindrance from APMC rules.

MONEY FOR OIL
Domestic turnover of the vegetable oil industry is Rs 70,000 crore and the import export turnover is around Rs 15,000 crore per year

Association suggested grant of 200 per cent weighted income tax deduction to companies undertaking 'oilseeds extension programme'

Since duty on the finished product is substantially lower than on imported raw material, indigenous vanaspati industry is under serious threat from import of cheap vanaspati