News Karnataka
Monday, May 23 2022
Industry

Centre should create buffer stock of mustard: Oil industry association

Centre should create buffer stock of mustard: Oil industry association

New Delhi: The Centre should create a buffer stock of mustard seeds of at least 2.5 million tonnes, like pulses, to enhance domestic production and reduce imports of cooking oils, the Central Organization for Oil Industry and Trade (COOIT) said on Tuesday as part of its wish list ahead of the budget.

“The procurement for the proposed creation of buffer stock should be made at market price at the very beginning of crop season, which will ensure oil processing units would operate throughout the year,” the COOIT, an apex body for the vegetable oils sector, said in a statement.

It also wants the government to widen the gap between import duties of crude edible oils and refined edible oils.

India imported edible oils worth Rs 1.17 lakh crore, an all-time high, in the 2020-21 oil marketing year ended October, mainly due to a sharp rise in global prices. COOIT feels that it’s high time the central and state governments focus on increasing domestic production of oilseeds.

“We urge the government to launch a dedicated scheme in the upcoming budget with a significant allocation to encourage farmers for cultivation of various oilseeds crops like mustard, soya bean and sunflower,” COOIT chairperson Suresh Nagpal said.

The government had in August 2021 launched the National Mission on Edible Oils – Palm (NMEO-OP) with a financial outlay of Rs 11,040 crore to boost domestic production of palm oil. “A similar initiative should be undertaken to increase the cultivation of mustard,” he said.

“Like wheat and rice, a small quantity of mustard oils can be supplied every month to over 80 crore beneficiaries covered under the National Food Security Act at a subsidised rate. This will prompt farmers to cultivate mustard,” the COOIT chairperson said.

See also  Air-conditioned coaches to transport chocolates, noodles on SWR

The government has offered an increased MSP for mustard this year and the results have started showing with the area under mustard cultivation likely to increase by 25 per cent and mustard production estimated to be at 110 lakh tonnes.

“If the government creates a buffer stock of 25 lakh tones of mustard, it will further encourage mustard cultivation and also act as a price stabilization mechanism in case of sharp fluctuations in mustard prices as it was witnessed during 2021,” Nagpal said.

The association also strongly said that the difference between import duty on crude edible oils and refined edible oils should be larger to protect the interest of domestic processors. Earlier the difference was 11 per cent, which is now at 5.5 per cent.

“This is adversely impacting crude palm oil (CPO) refining industry in India and hence, duty differential needs to be increased, the statement said.

Established in 1952, COOIT is the national apex body representing the interests of the entire vegetable oil sector in the country and its members include state-level associations, prominent manufacturing/business, trade, and export houses.

MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published.

Subscribe to our Podcast across platforms
AnchorAmazon MusicSpotifyGoogle PodcastsSoundCloudCastBoxRadio PublicRSS

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

Subscribe Newsletter

Get latest news karnataka updates on your email.