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Informist, Thursday, Nov. 21, 2024

MUMBAI – The Solvent Extractors' Association of India has urged the government to take steps to boost exports of rapeseed meal from India by increasing subsidies. The association has urged the government to grant a 15%

export incentive through higher Remission of Duties and Taxes on Exported Products rates, freight subsidies, and interest subvention.

This will enhance export competitiveness and ensure that domestic rapeseed prices stay above the minimum support price, thereby increasing edible oil availability, the association President Sanjeev Asthana said in a letter to members.

Under the Remission of Duties and Taxes on Exported Products, or RoDTEP, scheme, introduced on Jan. 1, 2021, exporters get refunds on various central and state taxes that are not refunded under other duty remission schemes.

India is a key exporter of rapeseed meal, which is used as cattle feed in the international market. Exports of rapeseed meal fell by 25% in Apr–Oct due to uncompetitive pricing, the association said. Bangladesh, South Korea, and Thailand are the major importers of rapeseed meal. 

The SEA along with The Soyabean Processors Association of India have also strongly advocated for higher RoDTEP rates, freight subsidies, and interest subvention for soybean meal exports, the letter said.
 

SEA has also appealed to the government to lift the ban on de-oiled rice bran exports to protect stakeholders and stabilise the market. The government banned the export of de-oiled rice bran in July 2023. The ban on de-oiled rice bran exports has caused its prices to plummet from INR 17,000 per tonne to INR 10,000, harming the vegetable oil industry, the letter said.

The association also urged the Securities and Exchange Board of India and the Ministry of Finance to lift the suspension of futures trading on mustard seed, soybean, and crude palm oil, which has adversely affected price discovery mechanisms.  End

Reported by Anjali Lavania

Edited by Saji George Titus

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