SOPA urges government to increase import duty on edible oils by 10 percent
08-Sep-2025 11:24 AM
Indore. Soybean Processors Association of India (SOPA) has urged the Central Government to increase the import duty on edible oils by at least 10 percent,
saying that due to the continued huge import of cheap oil from abroad and weak prices in the domestic sector, soybean sowing area has declined by about 5 percent at the national level during the current Kharif season. Farmers have lost enthusiasm for soybean cultivation due to not getting profitable returns.
According to SOPA, the wholesale market price of soybean remained below the minimum support price (MSP) of Rs 4892 per quintal in the 2024-25 marketing season, due to which the government had to make a record purchase of about 20 lakh tonnes of soybean from farmers. For the 2025-26 season,
the MSP of this important oilseed has been increased to Rs 5328 per quintal and given the current scenario, the price of soybean is likely to remain much below this MSP once again, which may force the government to buy it in almost double the quantity.
Soybean in government stock is sold at a price much lower than the total cost expenditure, due to which huge losses are being incurred. An alternative arrangement is needed to change this situation.
The Chairman of SOPA suggests that the government should establish a Price Support Scheme (PSS) for the purchase of soybean directly from the farmers and start a Bhavantar Bhugtan Yojana in its place.
While on the one hand the producers will get the amount of difference between the prevailing market price and MSP, on the other hand the government will also get rid of the storage, transportation and other expenses of soybean, which will reduce the pressure on the exchequer.
There is a huge import of cheap soybean oil from abroad. Its import is expected to jump to a new record level in the 2024-25 marketing season (November-October).
It is very important to curb this, therefore the customs duty should be increased by 10%. The demand and price of soya meal is being affected due to the rapidly increasing consumption of DDGS.