Increase in import duty on edible oils is likely to improve the price of oilseeds

17-Sep-2024 06:03 PM

Mumbai. After the sowing of Kharif oilseed crops is over, now is the time to prepare for harvesting. The wholesale market price of soybean had already come down considerably,

while there were apprehensions of further decline when the arrival of new goods started. This had increased the concern of the government along with the farmers.

Then, in view of the strong demand of the farmers and the oil industry, the Central Agriculture Ministry, taking the Food Ministry into confidence,

sent a proposal to the Finance Ministry to increase the import duty on edible oils and the Revenue Department of the Finance Ministry increased the import duty on edible oils by 20 percent.

This will make imports expensive and the indigenous crushing-processing industry will get an incentive to buy oilseeds from farmers at a higher price.

The wholesale market price of mustard has increased significantly in recent weeks and the price of mustard oil has also increased considerably.

Following this, there are now signs of improvement in the prices of soybean and groundnut. Although the government has given permission to buy soybean at the minimum support price in states like Madhya Pradesh,

Maharashtra and Karnataka, its intention is that the industry and trade sector should buy it as much as possible from the farmers. Due to less import of palm oil and sunflower oil in August,

the total import of edible oils declined. The government hopes that despite the strong arrival of new goods, the price of soybean may remain strong in the coming time.

The minimum support price of this important oilseed has been increased from Rs 4600 per quintal to Rs 4892 per quintal.

The support price of groundnut has also increased. There has been a good increase in the sowing of both these oilseed crops this time.