The government has allowed edible oil processors to import duty-free 20 million tonnes of soybean and sunflower oil annually for the next two years.
Edible oil wholesale prices rise
After the exemption of duty-free import of a certain quantity of soybean and sunflower oil, the import of the remaining oils will be affected due to the possibility of getting affected in the Delhi Oil- Oilseeds market on Saturday along with mustard, soybean oil, oilseeds and crude palm oil (CPO), palmolein. Along with this, there was an increase in the prices of mustard oil. On the other hand, the prices of groundnut oil, oilseeds and cottonseed oil remained at the previous level. Market sources said that the government edible oil Processors have been allowed duty-free import of 20 lakh tonnes of soybean and sunflower oil annually for the next two years.
After this, importers will have to pay duty at the rate of Rs 7 per kg on imports. But the importers are not buying new deals as the rest of the imported oils are expensive and non-competitive as compared to the cheaper imported oil with quota. Due to this a situation of short supply has arisen in edible oils and almost all edible oils have become expensive instead of cheap.
Edible oil prices fell in foreign markets
He said that even after the increase in the prices of edible oils, they are much cheaper than the native oils. Four-five months ago, the price of sunflower oil was around $2,450 a tonne, which has now come down to $1,300. Similarly, four to five months ago, the price of palmolein oil was $ 2,150 per ton, which has now come down to $ 850. The prices of imported oils have come down to less than half as compared to four-five months ago.
Demand for imposition of import duty of domestic industry
Sources said that if the price of one oil is expensive, then its effect is also visible on the rest of the edible oils, due to which the oil prices also improve. The import duty price of edible oils has been reduced on Friday night, but despite this, oil prices have increased due to short supply. Farmers will also benefit from the imposition of import duty by the government as their produce will be consumed in the market. This year, even after mustard is cheaper by Rs 20-30 per liter than imported oil, all the mustard could not be consumed. In such a situation, after its imported oils are costlier by about Rs 40 a liter, it will become even more difficult to consume it.
Leading oil body SOPA had also warned the government that there is sufficient soybean crop in the country, but in such a situation, after opening up imports, the consumption of Died Cake (DOC) of soybean will also be difficult. The government should immediately reconsider its decision and impose import duty. With this decision, after increasing imports, edible oils will be available cheaply to the consumers.