Key Excerpts from the SEA President's Letter to the Government

20-May-2025 04:37 PM

Key Excerpts from the SEA President's Letter to the Government
★ The India Meteorological Department (IMD) has forecast that the southwest monsoon will arrive in Kerala on 27th May, four days ahead of the normal onset date of 1st June. Rainfall this year is expected to be above normal, at 109% of the Long Period Average (LPA).
★ Nepal’s annual edible oil requirement is approximately 4.3 lakh tons. After India increased import duties in September 2024, Nepalese refiners imported 5.80 lakh tons of crude oil and exported 3.50 lakh tons of refined oil to India between 15th October 2024 and 15th April 2025 under the SAFTA agreement at zero duty. This has harmed the domestic refining industry and caused revenue losses for the Indian government.
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Export Ban on De-Oiled Rice Bran (DORB)
★ The Government imposed a ban on DORB exports in July 2023 due to high domestic prices. Currently, prices have fallen below Rs. 9,000 per ton, and demand has declined due to the increasing use of DDGS. As a result, there is significant surplus stock, which has impacted processors and millers in states like West Bengal and Odisha.
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Export Opportunity for Rapeseed Meal to China
★ Indian rapeseed meal is priced at US $209/ton (Ex-Kandla), compared to US $335/ton (Ex-Hamburg) in Germany. If China grants regulatory approval, India has a strong opportunity to tap into this market.
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Demand to Increase Duty Differential on Palm Oil
★ Heavy imports of palmolein have led to underutilization of domestic refining capacity. SEA has requested the Ministry of Food to raise the duty differential between crude and refined palm oil from 7.5% to 15%.
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Standardized Packaging of Edible Oils
★ SEA has urged the reimplementation of the Second Schedule under the Packaged Commodities Rules, which would standardize pack sizes and improve price transparency for consumers.
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Decline in Castor Seed Production
★ India’s castor seed production has declined from 19.6 lakh tons to 15.6 lakh tons this year. This may affect exports in 2025, which is a concern given India supplies nearly 90% of the global demand for castor oil.