'SEA' Urges Government to Provide Freight Subsidy on Edible Oils

12-May-2026 12:02 PM

Mumbai. The Solvent Extractors Association of India (SEA)—a leading organization representing the indigenous vegetable oil industry and trade sector—has urged the government to provide necessary policy support, assistance, and incentives to address the challenges arising from disruptions in edible oil imports and the escalating costs of importation, both stemming from the ongoing crisis in West Asia.

The Association has requested the Central Government to provide a subsidy on maritime transport costs (freight charges) for edible oils, to accord priority berthing at Indian ports to vessels carrying edible oils imported from abroad, and to authorize duty-free imports for oleochemical manufacturers. The Association notes that global market prices for crude mineral oil have surged to high levels, while the Indian currency (Rupee) has undergone significant depreciation. Consequently, the cost of importing vegetable oils from overseas has risen substantially.

Companies will be compelled to sell imported edible oils at higher prices in the domestic market, thereby further exacerbating the hardships faced by consumers. To tackle this issue, the government should implement measures designed to help maintain edible oil prices at reasonable levels.

In recent months, maritime transport freight charges (shipment costs) and insurance expenses for edible oil imports have witnessed a significant surge. When calculated in Indian Rupees, these costs appear even higher. Freight charges have risen sharply for edible oils imported from Russia-Ukraine, Argentina-Brazil, and Indonesia-Malaysia. If the government were to provide a subsidy on these costs, it would offer much-needed relief to both the industry and consumers.