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The Solvent Extractors' Association of India (SEA) has raised concerns about potential volatility in the global edible oil sector following a recent meeting with senior government officials in New Delhi.
In his monthly letter to members, SEA President Sanjeev Asthana said the association's delegation briefed Sanjeev Chopra, Secretary of the Department of Food and Public Distribution, on the current state of edible oil stocks and supplies.
The industry flagged several factors that could disrupt the global vegetable oil balance in the coming months. These include the possible impact of the El Niño weather phenomenon, continued uncertainty around sunflower oil supplies amid the ongoing Russia-Ukraine conflict, and Indonesia's B50 biodiesel programme. According to Asthana, these developments could increase the strategic importance of soybean and soybean oil in international markets.
The SEA delegation also met with Nidhi Khare, Secretary of the Department of Consumer Affairs, to discuss key industry concerns, including policy uncertainty around de-oiled rice bran (DORB), rapeseed exports to China, and imports from Nepal under the South Asian Free Trade Area (SAFTA).
On DORB, Asthana said earlier export restrictions had forced several processing units to shut down or scale back operations. The industry recommended bringing DORB under a 5 per cent GST framework to encourage greater utilisation of rice bran for domestic oil extraction, and stressed that policy predictability is essential for rebuilding supply chains.
Regarding rapeseed, Asthana noted that exports to China represent an important emerging opportunity. However, registration with the General Administration of Customs of China remains a bottleneck, with only five Indian exporters currently approved. SEA has raised the issue with the Union Commerce Ministry, which is expected to engage with Chinese authorities shortly.
On Nepal-SAFTA imports, Asthana clarified that the industry's concern is not legitimate trade with Nepal, but rather the potential distortion created by the zero-duty differential, particularly in markets such as eastern Uttar Pradesh and Bihar. SEA has recommended canalisation, quotas, a suitable minimum import price, and tighter Certificate of Origin safeguards to ensure that preferential tariff benefits are reserved for genuinely eligible Nepal-origin products.
Source: BusinessLine