Soyabean oil: Industry seeks curbs on imports of modified variety

Ashok B Sharma

New Delhi, Dec 10: The Central Organisation for Oil Industry & Trade (COOIT) has demanded restricting imports of soyabean oil extracted from genetically modified (GM) seeds.

In a pre-Budget memorandum submitted to the finance ministry, COOIT has stated that pending the revision in the WTO-bound tariff rate for soyabean oil, only those edible oils extracted from non-genetically modified sources should be allowed to be imported at the existing 45 per cent duty. If it is not possible to prohibit imports of soyabean oils extracted from GM seeds, a tariff rate quota of 1,50,000 may be allowed for imports against the existing 45 per cent duty.

The memorandum also stated that the recent government notification for reducing import duty on crude palm oil from 75 per cent to 65 per cent should be withdrawn and status quo ante be restored. Also the government notification allowing import of 1.50 lakh tonne crude sunflower and safflower oils in a financial year against a lower duty of 50 per cent and also allowing import of 1.50 lakh tonne of crude colza, mustard and rapeseed oils against 45 per duty should be withdrawn. All these crude edible oils should be imported at 75 per cent duty.

COOIT has demanded reduction in import duty on oilseeds to 15 per cent as the industry continues to suffer from large unutilised capacity without any immediate prospects of substantial increase in domestic oilseeds production. Increasing oilseeds productivity and production should be given greater thrust. Adequate funds should be earmarked from the increasing import duty revenues on edible oils for oilseed and oil development in the country.

A policy package for increasing oilseeds production should be formulated and implemented to ensure remunerative prices to oilseed growers. Money credit scheme should be re-introduced for usage of non-traditional oils in soap manufacture.