Edible Oil News: Edible Oil Industry Writes to Government Calling for Reduced Import Duties on Canola Oil
The industry said it wanted to boost the availability of edible oils and control prices, which was only possible if import duties were lowered sharply at a time of tight supply constraints.
Speaking to ET, Pradeep Chowdhry, Managing Director of South India-based Gemini Edibles & Fats India, said: “The South Indian states of Tamil Nadu, Andhra Pradesh, Telangana and Karnataka solely depend on sunflower oil for domestic cooking. The monthly requirement of sunflower oil in these four states is 150,000 tons. But with supply under pressure due to the Russian-Ukrainian war, the availability of sunflower oils in southern India has fallen to 70,000 tonnes per month. We immediately need a second oil to replace sunflower oil and canola oil is the only substitute as these states do not like soybean oil and mustard oil.
“The canola harvest is now complete. And if the government reduces duties, India can import canola oil to meet domestic demand,” said Sandeep Bajoria, CEO of oil consultancy Sunvin Group. The duty on canola should be at the same level as other imported sweet oils like soybean oil and sunflower oil at 5.5%, he added.
Canola oil shipments can come very quickly from Dubai, which has a large crushing capacity.
Industry executives, who did not want to be named, said that to allay government fears over the repercussions of domestic mustard seed oil, the industry has asked the government that imports of mustard seed oils canola are only allowed through the South Indian ports of Chennai. , Mangalore, Krishnapatnam and Kakinada.
To control rising prices, the 5% agricultural tax on crude palm oil should be reduced to zero for immediate consumer relief, industry executives have said.
Bajoria said the edible oil market corrected after it became clear Indonesia was not banning crude palm oil exports. “Prices went up once the news from Indonesia came in. But prices went down from that level. If canola oil imports are allowed, the market will cool down further,” he said. he declares.