Removal of SAD on edible oils opposed

Indore, Mar 1(UNI) While welcoming focus on agriculture in the union budget, Mr Davish Jain, Chairman, Central Organisation for Oil Industry and Trade, has expressed disappointment over the proposal to remove special additional duty of 4 percent on import of edible oil.

Reacting to the budget, he said it will not only hit the indigenous oilseeds industry and trade, but also de-motivate farmers from continuing cultivation of oilseeds. Current tariff rates are not at par with actual import prices and further reduction as proposed in the budget would only create a difficult situation for indigenous oilseeds farmers, particularly when rapeseed and mustard crop is ready for harvest, he added.

Moreover, it is not likely to have any significant anti-inflationary impact since in the wholesale price index, the weightage of edible oils is barely 2.73. Items other than oilseeds are primarily responsible for inflation.

Imports of edible oils already constitute about 45 percent of domestic demand and any further increased dependence on imports would be disastrous not only to indigenous oilseeds industry and trade but oilseed growers in particular, Mr Jain said.

UNI