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The Narendra Modi government has reiterated its plan to achieve self-sufficiency in oilseeds. Presenting the Budget for 2024-25, Finance Minister Nirmala Sitharaman said the government is committed to rolling out a ‘national mission for oilseeds’.
“To achieve self-sufficiency in pulses and oilseeds, we will strengthen their production, storage, and marketing. As announced in the interim budget, a strategy is being put in place to achieve ‘atmanirbharta’ for oilseeds such as mustard, groundnut, sesame, soybean, and sunflower,” she said.
Given the growing consumption of edible oils with an increase in disposal incomes and changes in food habits, the use for imports to meet the demand is a strain on the exchequer. Though domestic production has improved, it still cannot fill the supply gap.
Explaining the provisions of Finance Bill 2024, the government said the exemption of basic customs duty on oilseeds (along with seeds of other planting materials such as vegetable seeds) will be in vogue till March 31, 2026.
The industry awaits the details of the strategy.
Industry’s demands
The Indian Vegetable Oils Producers’ Association (IVPA) has been seeking incentives on capital expenditure to support new entrants and the expansion plans of existing players.
It also wanted a ban on import of refined oil to promote domestic manufacturing and local farmers.
The industry wanted a production-linked incentive (PLI) scheme exclusively for the edible oil and food processing sector to drive growth. It wanted measures to reduce the gap between the MSP (minimum support price) of certain crops and the prices of processed products to ensure sustainability.
The industry wanted the government to lift curbs on export of de-oiled rice bran (DORB) to improve profitability for processors and farmers.
It asked the government to introduce a dynamic slab import duty system linked to international prices, oilseeds MSP, and the consumer price index.
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