The Solvent Extractors Association of India (SEA) has noted in a latest update that Crude Palmoil Oil Price crashed from the highest of US$ 2010 in March 22 by US$ 625, while soybean oil down by US$ 384 and sunflower oil by US$ 285. Also, considering the lifting of the export ban on CPO by Indonesia, increase in availability of Sunflower Oil from Ukraine by Road through neighboring countries and expected higher production of Palm oil and soya oil in the world will push the price further down. By allowing the TRQ at NIL duty, the government would bind itself which can prove disastrous for our domestic oilseed farmer. SEA noted that it has strongly suggested to the Government that TRQ is no longer required as the basic objective of reducing inflationary burden on consumers has already been met with massive fall in import prices of Palm, Soya and Sun oil. The monsoon's progress will help farmers accelerate sowing of summer-sown crops, which has been lagging due to below-normal rainfall in the first half of June, especially in central India.
The Government has further increased the minimum support price for all Kharif crops including oilseeds for 2022-23 season. The Government raised MSP for Groundnut (5.41%), Sunflower seed (6.40%), Soybean (8.86%). The Government should use MSP as a tool for both encouraging the crops which are in short supply like oilseed & pulses and disincentive to reduce crops like wheat and rice which are abundant. Also, use as an opportunity for offering higher MSP or special incentives particularly farmers from Punjab & Haryana for shifting their area from Rice to Maize in Kharif crop and to Rape/Mustard crop from wheat in Rabi crop to balance eco system.
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