http://articles.economictimes.indiatimes.

com/2015-05-21/news/62460236_1_oil-industry-treeborne-oilseeds-palm

Indian edible oil industry tries to increase

oil palm plantation in North East India
ET Bureau May 21, 2015, 03.52PM IST

Tags:

SEA|
Oil palm|
North East|
Edible oil|
Cultivation

(Arunachal Pradesh has a)

PUNE: The edible oil industry in the country is exploring the possibility of increasing oil
palm cultivation in the North East. It has asked for transport and plantation material subsidies
to boost its cultivation in the region.
A seven members team of SEA under Leadership of Dr. Anupam Barik, Additional
Commissioner (Oilseeds), Ministry of Agriculture visited North East states of Mizoram,
Assam and Arunachal Pradesh during May 10 and May 15, 2015 to evaluate the scope from
oil palm cultivation.

Oil palm cultivation in some of North East states has good potential. Mizoram has already
taken initiative and nearly 20,000 hectares are under oil palm plantation having potential to
expand to 80,000 hectares.
Similarly Arunachal Pradesh has a potential of nearly 1.20 lakh hectare of oil palm
plantation. Assam too offers good potential for oil palm plantation and beginning is already
done.
"There are also opportunities for tapping and growing of tree borne oilseeds as well as
oilseeds like rapeseed / mustard seed in North East States," the release stated. SEA had
meetings with the Agriculture Ministers of Mizoram and Arunachal Pradesh and also with the
senior officials of their department looking after oil palm plantation for expanding the oil
palm plantation in these states.
SEA raised issues like need for higher transport and planting material subsidies, timely
release of fertilizers, link roads constructions etc. which will be highly useful for all the
involved entrepreneurs.

http://www.business-standard.com/article/markets/import-duty-to-have-little-impact-on-domesticedible-oil-industry-114122600582_1.html

Import duty to have little impact on

domestic edible oil industry
With the current revision, the import duty on CPO and RBD works out to 7.5% and
15% respectively
Dilip Kumar Jha | Mumbai
December 27, 2014 Last Updated at 21:01 IST

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The five per cent increase in import duty on vegetable oil isnt enough, says the edible oil
refining sector.

Since the announcement of an increase in import duty on Wednesday, the price of crude palm
oil in the spot Kandla market shot up six per cent to Rs 449.70 per 10 kg. Similarly, refined
soy oil jumped four per cent to Rs 670 per 10 kg in the benchmark Indore market.
To encourage domestic seed crushing and refining, it had urged the central government to
raise the differential duty between crude and refined oil to 15 per cent. The government
raised the import duty by five per cent on both crude palm oil (CPO) and refined, bleached
and dioderised (RBD) oil, the differential duty is unchanged at 7.5 per cent. The current duty
on CPO and RBD is 7.5 per cent and 15 per cent, respectively.
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The rise in duty, say trade sources, will from February begin helping domestic crushing units, while
hurting refiners importing crude edible oil to refine and sell that. This is because the current nil
export duty regime by both Malaysia and Indonesia ends in January. In February, the export duty on
crude oils from there will automatically be 7.5 per cent. Indonesia and Malaysia have both had a
surplus in stocks, whose export theyve been encouraging.
The five per cent increase in import duty will translate into a maximum of Rs 1-1.50 a kg rise in
edible oil prices. This is too small to make any remarkable change in the realisation for farmers and
refiners, said
B V Mehta, executive director of the Solvent Extractors Association. Anticipating the duty rise,
Indian refiners had intensified import of crude palm oil (CPO). The rise was 40 per cent in NovemberDecember, resulting in a massive swell into the pipeline inventory at an all-time high of around two
million tonnes.
Also, oilseed prices have hit a five-year
low, with lower crushing. Soybean, for
example, is trading at Rs 3,180 a quintal, a
decline of 16 per cent from Rs 3,790 a qtl
in December 2013. In the past year,
refined oil prices have declined by 18 per
cent to Rs 48,000 a tonne. Crude
degummed soya oil is currently down by
13 per cent to Rs 56,500 a tonne and CPO
by 26 per cent to Rs 41,000 a tonne.
The major objective of the government
in raising the import duty on veg oil was
to check rising imports, which could have
been possible through encouraging of
domestic refineries. Since there has been
no change in the differential duty, import would continue unabated. Domestic refineries will
continue to face a disparity, currently at Rs 1,000 a tonne on soybean oil, said Mehta.

Of the estimated 19.5 million tonnes of overall demand, Indias import in 2014-15 (NovemberOctober) is forecast at 12.3 mt. Lower seed availability might raise our import dependence, primarily
from Malaysia and Indonesia. The Central Organisation for Oil Industry & Trade has estimated the
kharif oilseed output at 27.6 mt this year as compared to 29.35 mt the previous year, due to delay in
sowing after a months delay in monsoon rain.
Output during the rabi season will also be lower. Against normal rabi oilseed sowing of 8.66 million
hectares, about 7.2 mn ha has been done till now.
Indias import of edible oil will continue to grow, as the revision in import duty will have negligible
impact on availability from local sources, said Siraj Choudhary, chairman, Cargill India.
http://articles.economictimes.indiatimes.com/2015-05-21/news/62460065_1_oil-mills-edible-oilsgroundnut-oil

Industry opposes mandatory fortification of

edible oils with vitamins A and D
ET Bureau May 21, 2015, 03.42PM IST

Tags:

vitamins|
SMALL SCALE|
mandatory|
industry|
fortification|
edible oils|
D|
a

(The industry asked the government)

PUNE: The edible oil industry in the country has any move by the government for mandatory
fortification of edible oils with Vitamin A and D, claiming this can result in down fall of the
industry, which consists of 60 per cent to 70 per cent units in the small scale sector.

"Recently, various forums are deliberating for mandatory fortification of edible oils with
Vitamin A & D. The oil mills crushing around 60-70 per cent of the oilseeds produced in the
country are in the small scale and the oil is packed by packers are also in the small scale or
micro scale industry. They are neither equipped nor have expertise to add micronutrients in
edible oils," said a statement released by the Solvent Extractors Association of India (SEA).
India consumes about 190 lakh tonnes of edible oils per annum out of which rapeseed oil,
groundnut oil, sesame oil and copra oil are consumed as raw oil (expeller variety) due to
regional preferences for flavours which are already rich in antioxidant and not required to be
further fortified.
There are 15,000 oil mills, over 650 solvent extraction plants, 550 refiners and 250 vanaspati
units and thousands of vegetable oil packers.
"Our Association is of the considered opinion that before imposing fortification, proper
studies should be conducted to check the bioavailability of the added vitamins in edible oils

from an Indian context since cooking and frying are the major operations carried out. We
very strongly recommend a cost versus benefit analysis done by an independent agency
especially in the light that the Vitamins in questions are relatively costly and are currently
being imported in to the country," the release stated.
Any mandatory fortification will result in the down fall of the already ailing edible oil
industry in the country and with no tangible benefit to the consumers, feels the industry.