👍Dr. Davish Jain - Chairman SOPA👍 NOTE ON MEETING AT PMO ON 22nd DECEMBER, 2014 EDIBLE OIL SECOND LARGEST CONTRIBUTOR TO IMPORT BILL: Burgeoning edible oil import of over 11 million tonnes annually, with an import bill of over Rs. 65000 crores, adding to adverse trade balance. Our dependence on imports for edible oils is almost 60%, As this is an essential food item, such high dependence on imports is compromising food security. Very low import duty of only 2.5% is encouraging cheap imports. 15 years back, import duty on palm oil was 90% and on all other oils, it was 45%. Our oilseeds production was able to meet 70% of our domestic needs. If effective steps had been taken at that time to increase oilseed production, we would not have reached this deplorable state of affairs. However, rather than investing in oilseed productivity and move towards self-sufficiency, we reduced customs duty to encourage cheap oil imports. This policy is actually incentivizing the Palm growers in Indonesia and Malaysia and Soybean in The Americas. This lop-sided view is responsible for the fact that there is hardly any increase in oilseeds production. As a result, our import bill continues to rise every year and will continue to do so. Suggestion: Increase customs duty on edible oils to 17.5% and 25% for crude and refined, respectively. OILSEED DEVELOPMENT FUND: Import increasing year on year because while demand continues to rise, oilseed production is stagnant for more than a Current oilseeds production is only half of what is required. Effective steps on war footing are required to increase oilseeds production. As area is limited, productivity increase is only way out, which can be achieved with sustained efforts. While average productivity is low, it is a proven fact that with use of right quality seed, improved production technology and use of right inputs at the right time, productivity can go up by 50 to 80%. For instance, in soybean, while average is still around 1000 Kgs. per hectare, Front Line Demonsturations have repeatedly yielded productivity of 1800 to 2000 kgs. Suggestion: Immediately establish an Oilseed Development Fund which can be easily funded by earmarking a part of the import duty on edible oils for this Fund. At current rate of imports, Oilseed Development Fund @ say 5% will have a corpus of Rs. 10,000 Crores in three years. The Fund will focus on addressing the four essential issues affecting productivity which are ensuring good seed, access to crop production technology by farmers, input supply and development of higher yielding varieties. Our granaries are overflowing with Wheat and Rice. We need to now shift our focus to Oilseeds and Pulses FALL IN SOYMEAL EXPORTS: This year, Soymeal exports have fallen by almost 90%, because of reasons beyond the control of the industry. India is out-priced by Argentina, Brazil and USA because their cost of raw material is low on the one hand; they have the economies of scale on the other. Another reason is that Iran was our major market, buying almost 40% of our total exports, because it could not pay in hard currencies. Now the situation has changed and has been taken over by Argentina and Brazil. Another major market Japan has been taken over by China, who can sell cheaper because of their Geographical proximity. Although we get premium, this is not enough to offset the price difference. Suggestion: Offer incentives on exports of Soybean Meal to help the industry meet competition. NUTRITION SECURITY FROM SOYBEAN: Soybean is the cheapest known source of high quality vegetable protein with rich amino acid profile. India’s Nutrition Security could be addressed by using soy protein in the form of mixing soy flour with wheat and gram flour. Through proper propagation, goodness of soy flour should be promoted on a grand scale at national level to supplement protein by 5 to 10% mixing in wheat flour and 15 to 20% in gram flour. Use of soy flour supplement should be made mandatory in Mid-day meal and women and child welfare programs and for defense personnel. The cost of soy flour is much less than pulses while the protein content is two and half times. We were given patient hearing appreciating our point of view and concerns. Further submission would be made to take our cause forward expeditiously. :::::::::::::::::::::::::::::::::::::::::::: 👍Dr. Davish Jain - Chairman SOPA👍 NOTE ON MEETING AT PMO ON 22nd DECEMBER, 2014 EDIBLE OIL SECOND LARGEST CONTRIBUTOR TO IMPORT BILL: Burgeoning edible oil import of over 11 million tonnes annually, with an import bill of over Rs. 65000 crores, adding to adverse trade balance. Our dependence on imports for edible oils is almost 60%, As this is an essential food item, such high dependence on imports is compromising food security. Very low import duty of only 2.5% is encouraging cheap imports. 15 years back, import duty on palm oil was 90% and on all other oils, it was 45%. Our oilseeds production was able to meet 70% of our domestic needs. If effective steps had been taken at that time to increase oilseed production, we would not have reached this deplorable state of affairs. However, rather than investing in oilseed productivity and move towards self-sufficiency, we reduced customs duty to encourage cheap oil imports. This policy is actually incentivizing the Palm growers in Indonesia and Malaysia and Soybean in The Americas. This lop-sided view is responsible for the fact that there is hardly any increase in oilseeds production. As a result, our import bill continues to rise every year and will continue to do so. Suggestion: Increase customs duty on edible oils to 17.5% and 25% for crude and refined, respectively. OILSEED DEVELOPMENT FUND: Import increasing year on year because while demand continues to rise, oilseed production is stagnant for more than a Current oilseeds production is only half of what is required. Effective steps on war footing are required to increase oilseeds production. As area is limited, productivity increase is only way out, which can be achieved with sustained efforts. While average productivity is low, it is a proven fact that with use of right quality seed, improved production technology and use of right inputs at the right time, productivity can go up by 50 to 80%. For instance, in soybean, while average is still around 1000 Kgs. per hectare, Front Line Demonsturations have repeatedly yielded productivity of 1800 to 2000 kgs. Suggestion: Immediately establish an Oilseed Development Fund which can be easily funded by earmarking a part of the import duty on edible oils for this Fund. At current rate of imports, Oilseed Development Fund @ say 5% will have a corpus of Rs. 10,000 Crores in three years. The Fund will focus on addressing the four essential issues affecting productivity which are ensuring good seed, access to crop production technology by farmers, input supply and development of higher yielding varieties. Our granaries are overflowing with Wheat and Rice. We need to now shift our focus to Oilseeds and Pulses FALL IN SOYMEAL EXPORTS: This year, Soymeal exports have fallen by almost 90%, because of reasons beyond the control of the industry. India is out-priced by Argentina, Brazil and USA because their cost of raw material is low on the one hand; they have the economies of scale on the other. Another reason is that Iran was our major market, buying almost 40% of our total exports, because it could not pay in hard currencies. Now the situation has changed and has been taken over by Argentina and Brazil. Another major market Japan has been taken over by China, who can sell cheaper because of their Geographical proximity. Although we get premium, this is not enough to offset the price difference. Suggestion: Offer incentives on exports of Soybean Meal to help the industry meet competition. NUTRITION SECURITY FROM SOYBEAN: Soybean is the cheapest known source of high quality vegetable protein with rich amino acid profile. India’s Nutrition Security could be addressed by using soy protein in the form of mixing soy flour with wheat and gram flour. Through proper propagation, goodness of soy flour should be promoted on a grand scale at national level to supplement protein by 5 to 10% mixing in wheat flour and 15 to 20% in gram flour. Use of soy flour supplement should be made mandatory in Mid-day meal and women and child welfare programs and for defense personnel. The cost of soy flour is much less than pulses while the protein content is two and half times. We were given patient hearing appreciating our point of view and concerns. Further submission would be made to take our cause forward expeditiously. ::::::::::::::::::::::::::::::::::::::::::::
Posted on: Sat, 27 Dec 2014 03:01:14 +0000
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