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Pune: The soybean processing industry has urged the government to continue with the current import duty structure because speculation about an impending cut on the levy on edible oils has made the market volatile.
“Rumours of duty cut on import of are causing volatility in oilseed prices. The edible oil market has been very volatile in the last couple of days, due to strong rumours of a cut in import duty on edible oils and the prices of edible oils have gone sharply up and down. This volatilite has also been seen in oilseed prices,” industry body Soyabean Processors’ Association (SOPA) said in a statement.
SOPA has requested the government to maintain current duty structure on edible oil imports. “It is in the interest of Indian farmers and oilseed processing industry,” it said.
A day earlier, Solvent Extractors’ Association (SEA) that represents the spectrum of edible oil industry, had advised the government against duty cut as it could affect the prospect of expansion in area sown under edible oils in the country.
Government had tweaked the import policies of onion and pulses to tame inflationary tendencies in these commodities. However, it has not taken any policy decision yet to tackle the concerns about increasing edible oil prices. Farmers are presently sowing mustard and industry is expecting a record harvest thanks o all time high prices of mustard oil.
According to analysts, edible oil prices are likely to stay firm through the first quarter of 2021.