SEA urges govt to stop issuing further licence for palmolien imports

Solvent Extractors Association of India (SEA) urged the government to stop issuing further licences for the import of palmolien in a representation to the Commerce & Industry Ministry. Industry experts believe that it would further depress local prices ahead of the arrival of massive mustard seed crop. This comes amidst media reports stating that the Directorate General of Foreign Trade (DGFT) has issued licences for the import of 11 lakh tonnes of palmolien.

SEA President Atul Chaturvedi has said, “We are dismayed at this action which has the potential of destroying palm refining industry in the country. This is contrary to our PM”s vision of Make in India.” He also clarified that there is no shortage of RBD Palmolein or edible oils in the country and also edible oil prices in international as well as domestic markets are showing downward trend in the last one-and-a-half months. However, he expressed his concern with a massive mustard crop ready for harvesting, import of palmolien will have a great dampening effect on prices of domestic oilseeds and oils. The association believes that Indonesia has great advantage to supply RBD Palmoelin to India as it is cheaper than crude palm oil (CPO), at present, with higher levy on CPO at US$ 50 per tonne and lower duty on RBD Palmoelin at US$ 30 per tonne.