OUR BUREAU, THE HINDU BUSINESS LINE
MUMBAI, AUG. 22:
The Government proposal to ban export of oilmeals will jeopardise all the efforts made by the industry to promote exports, said Sushil Goenka, President, Solvent Extractors’ Association of India (SEAI).
The Department of Animal Husbandry recently said it will recommend a complete ban or impose duty on oilmeals to improve domestic supply and bring down prices.
“The industry is not interested in export for the sake of export. There is a limited demand for oilmeal in India and therefore, the industry has to tap other avenues,” said Goenka.
The total production of oilseeds and oil-bearing material in the country is about 481 lakh tonnes and the availability of oilcake/meal is 330 lakh tonnes. India exports about 15 per cent of its total oilmeal production.
The exports have helped farmers realise better price for oilseeds and also the vegetable oils obtained by solvent extraction adds to the domestic pool of vegetable oil production, he said.
The oilmeal export ban, if implemented, will be counter productive as it will not only hit the crushing industry but also the solvent extraction plants that could face a shut down resulting in lesser vegetable oil production. A situation like this would lead to larger import of edible oil and higher prices of oilmeal in the domestic markets, Goenka said.
In order to bring down domestic oilmeal prices, the Central Government should swiftly notify its decision to allow duty free import of oilcake. If this is done, he said, the industry can explore the possibility of importing copra cake from the Philipines and Indonesia, palm kernel cake from Indonesia and Malaysia, sunflower cake from Ukraine and other east European countries and canola cake from Australia.
This will not only augment supply of de-oiled meals but also encourage higher capacity utilisation of the solvent extraction plants.
MUMBAI, AUG. 22:
The Government proposal to ban export of oilmeals will jeopardise all the efforts made by the industry to promote exports, said Sushil Goenka, President, Solvent Extractors’ Association of India (SEAI).
The Department of Animal Husbandry recently said it will recommend a complete ban or impose duty on oilmeals to improve domestic supply and bring down prices.
“The industry is not interested in export for the sake of export. There is a limited demand for oilmeal in India and therefore, the industry has to tap other avenues,” said Goenka.
The total production of oilseeds and oil-bearing material in the country is about 481 lakh tonnes and the availability of oilcake/meal is 330 lakh tonnes. India exports about 15 per cent of its total oilmeal production.
The exports have helped farmers realise better price for oilseeds and also the vegetable oils obtained by solvent extraction adds to the domestic pool of vegetable oil production, he said.
The oilmeal export ban, if implemented, will be counter productive as it will not only hit the crushing industry but also the solvent extraction plants that could face a shut down resulting in lesser vegetable oil production. A situation like this would lead to larger import of edible oil and higher prices of oilmeal in the domestic markets, Goenka said.
In order to bring down domestic oilmeal prices, the Central Government should swiftly notify its decision to allow duty free import of oilcake. If this is done, he said, the industry can explore the possibility of importing copra cake from the Philipines and Indonesia, palm kernel cake from Indonesia and Malaysia, sunflower cake from Ukraine and other east European countries and canola cake from Australia.
This will not only augment supply of de-oiled meals but also encourage higher capacity utilisation of the solvent extraction plants.
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