Thrust on the rural and infrastructure development has brought cheers for agro-based companies like ours. Total withdrawal of export duty on de-oiled rice bran oil cake will help the industry as such a duty had made our exports uncompetitive. Non-inclusion of agro commodities for the CTT on commodities trading again will help the sector. Setting up storage tanks, silos, go-downs in rural sector will certainly boost agriculture sector in India. Higher allocation to agriculture and rural sector and investment allowance at the rate of 15 per cent on investment in plant and machinery made after April 01 will also boost the industry. However, edible oil extraction industry was disappointed as no relief was provided to do away with the import duty structure anomalies on the crude and refined palm oil. We were expecting the Finance Minister to raise import duty on crude palm oil to 10 per cent and refined palmolein to 20 per cent thus maintaining a healthy differential of 10 per cent that could have benefited farmers and the domestic refining industry. The industry as a whole has invested over Rs 5,000 crore and employs over 5, 00,000 people. How can an industry continue to make investments if its plans are upset by such sudden changes in policy? These changes suddenly cause us to review our overall strategy. We have to go straight back to the drawing board and revaluate our business plans and suddenly many of these look unviable.
Dinesh Shahra, MD, Ruchi Soya Industries Ltd