🎄🌟 🎉 Wishing our readers a Merry Christmas and a Happy New Year filled with new possibilities! 🎄🌟 🎉
Connect with:
Thursday / December 26. 2024

logo
mobile-logo
HomePosts Tagged "edible oil"
AgroPolicy, India, Supply Chain, Trade

The decision is expected to augment the earlier measures taken by the Government to reduce the prices of Edible Oils in the domestic market

To ensure the availability of edible oil to consumers at affordable prices, the Central Government has reduced the Basic Import Duty on Edible Oils. The Department of Food and Public Distribution vide Notification issued an order to this effect wherein the Basic Import Duty on Refined Soyabean Oil and Refined Sunflower Oil has been reduced from 17.5 per cent to 12.5 per cent with effect from today. This will remain in force till 31st March 2024.

The decision is expected to augment the earlier measures taken by the Government to reduce the prices of Edible Oils in the domestic market. The Basic Import Duty is an essential factor which impacts the landed cost of Edible Oils which in turn affects the domestic prices. Reduction in Import Duty on Refined Sunflower Oil and Refined Soyabean Oil will benefit the consumers, as it will help ease domestic retail prices.

The Import Duties on Refined Soyabean Oil and Refined Sunflower Oil were last reduced from 32.5 per cent to 17.5 per cent in October 2021. This was done as during the year 2021, the international prices were very high, which was getting reflected in the domestic prices as well.

The Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution is closely monitoring the prices of Edible Oil in the country and ensuring its adequate availability to consumers.

The decision is expected to augment the

Company News, India, Oilseeds, Sustainability

The initiative aims to uplift farming communities and contribute to India’s self-reliance on edible oils

3F Oil Palm in association with the Assam government, recently organised a ceremonial plantation of Oil Palm under the National Mission on Edible Oil – Oil Palm (NMEO-OP) at Bokanala in Assam’s Lakhimpur district. State Agriculture Department and 3F Oil Palm mark the first Oil Palm Plantation under the NMEO-OP in Assam. 

“The initiative aims to uplift farming communities and contribute to India’s self-reliance on edible oils. It emphasises the government’s commitment to the development and progress of the Oil Palm Plantation sector,” according to the official statement. 

The ceremony is being hosted by 3F Oil Palm, a leading player in the Oil Palm industry that has already established a state-of-the-art oil palm nursery at Bokulbari village in Lakhimpur district and another nursery in the pipeline at Chirang. 

In recognition of their commitment towards the Oil Palm development and processing industry, 3F Oil Palm has already signed an MOU with the Assam government in December 2022 and aims to develop Oil Palm plantations and processing facilities in sub-zone 1-b and V-a, encompassing Lakhimpur and Chirang districts, as part of the NMEO-OP, the statement added.

Sanjay Goenka, Managing Director and CEO of 3F Oil Palm said, “The ceremonial plantation of Oil Palm under the NMEO-OP is a significant step towards the development of the Oil Palm industry in the state of Assam. It gives me immense pride to note that upon signing the MoU with the government in December 2022, we are the first company to have commenced our investment and set up a state-of-the-art nursery and commence plantation activities through this ceremonial plantation. 

“We are committed to contributing to the progress of this sector in Assam and we aim to cover over 20,000 Ha of the area under Oil Palm over the next 5 years”

3F Oil Palm has ambitious plans to develop 23,500 hectares of Oil Palm plantations over the next five years, the statement added. The company already has an upcoming greenfield integrated Oil Palm processing unit in Arunachal Pradesh. 

The initiative aims to uplift farming communities

AgroPolicy, India, Oilseeds, Supply Chain, Trade

The leading Edible Oil Associations were advised to take up the issue with their members immediately and ensure that the MRP of each oil is reduced in line with the decline in the international prices of edible oils with immediate effect

The decline in the price of Edible Oil should be passed on to consumers expeditiously, said, Sanjeev Chopra, Secretary DFPD during a meeting with the leading industry representatives.

The international prices of imported edible oils are on a downward trend which gives a positive scenario in the edible oil sector in India. Representatives from the Solvent Extraction Association of India (SEAI) and the Indian Vegetable Oil Producers’ Association (IVPA) were present to discuss a further reduction in the retail prices of cooking oils amidst a fall in global prices.

The industry informed that the global prices of different edible oils have fallen by $ 200-250 per tonne in the last two months, but it takes time to reflect in the retail markets and the retail prices are expected to come down shortly.

The leading Edible Oil Associations were advised to take up the issue with their members immediately and ensure that the MRP of each oil is reduced in line with the decline in the international prices of edible oils with immediate effect. Price to distributors (PTD) by the manufacturers and refiners also needs to be reduced with immediate effect so that the price decline is not diluted in any way.

It was also impressed upon that whenever a reduction in price to distributors is made by the manufacturers/refiners, the benefit should be passed on to the consumers by the industry and this Department may be kept informed on a regular basis. Some companies which have not reduced their prices and whose MRP is higher than other brands have also been advised to reduce their prices.

Other issues like price data collection and packaging of edible oils were also discussed in this meeting.

Earlier also, in pursuance of the Department’s meetings with leading edible oil associations, the MRP of edible oils such as Sunflower Oil, Soyabean Oil and Mustard Oil were reduced by the industry. The reduction in oil prices came in the wake of the reduction of international prices and reduced import duty on edible oils making them cheaper.  The industry was advised to ensure that the complete benefit of the reduced duty is passed on to the consumers.

With the edible oil prices beginning to show a downward trend and set to witness further reductions to be made by the edible oil industry, Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in cooling inflation as well.

The leading Edible Oil Associations were advised

AgroPolicy

The Centre also advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way

The Department of Food and Public Distribution in a meeting on July 6, 2022, has directed leading Edible Oil Associations to ensure reduction in the MRP of edible oils by Rs 15 with immediate effect.

The Centre also advised that the price to distributors by the manufacturers and refiners also needs to be reduced immediately so that the price drop is not diluted in any way. It was also impressed upon that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the Department may be kept informed on regular basis. Some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices.

During the meeting it was discussed that the international prices of imported edible oils are on a downward trend which is a very positive picture in the edible oil scenario and, therefore, the domestic edible oil industry needs to ensure that the prices in the domestic market also drop commensurately.

It may be recalled that in May 2022, the Department had convened a meeting with the leading edible oil associations and according to sources, the MRP of Fortune Refined Sunflower Oil 1 litre pack had been decreased to Rs 210 from Rs 220 and MRP of Soyabean (Fortune) and Kachi Ghani oil 1 litre pack from Rs 205 to Rs 195. The reduction in oil prices came in the wake of Central Government reducing the import duty on edible oils making them cheaper. 

The Department is continuously monitoring the prices and availability situation of edible oil in the country and it is imperative that the benefit of reduced duty structure on edible oils and the continuous significant drop in prices at the international market be immediately passed on to the end consumers without fail.

The Centre also advised that the price

AgroPolicy, Oilseeds

Brings all states/UTs under Single Central Order on stock limits for edible oils and oil seeds

The government has notified a Central Order on March 30, 2022, amending the removal of licensing requirements, stock limits and movement restrictions on Specified Foodstuffs Order, 2016 and its Central Order dated February 3, 2022, by extending the stock limits for all edible oils and oil seeds put together for a period up to December 31, 2022, for all States/Union Territories. This order is effective from April 1, 2022, up to December 31, 2022.

Six states viz Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar that had issued their control order in pursuance of the

Central Order dated October 8, 2022, have also been brought under the purview of the latest order with effect from April 1, 2022. With the issue of this Central Order, all States/UTs have been brought under one single order. It is mentioned that the six states mentioned above were earlier exempted from the Central Order dated February 3, 2022, as they had issued their Central Orders.

Eight central teams have been deputed by the Government of India, Department of Food & Public Distribution till April 30, 2022, for strict compliance/ enforcement of the above Central Order. The surprise inspections are presently underway in selected districts of eight States for checking the stocks of edible oils and oilseeds at ground level i.e with the retailers, wholesalers, big chain retailers and processors. These states are Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Telangana, Gujarat, West Bengal and Delhi. Strict action in accordance with the provisions in the EC Act will be initiated against the entities if found to be violating the Act.

The above Stock Limit Order notified by the government empowers the Union Government and all states/UTs to regulate the storage and distribution of edible oils and oilseeds. This step coupled with surprise inspections seeks to help the Government in checking the hoarding of edible oils and oilseeds in the country and ensure that the prices of edible oils, which are a basic necessity, do not go out of reach of the common man.

Brings all states/UTs under Single Central Order

Oilseeds

The order aims at regulating storage and distribution of edible oils and oilseeds besides, keeping check over hoarding in the country

Centre has chaired a meeting with States/UTs to implement Stock Limit Order of edible oils and oilseeds. The Government of India has notified an order on February 3, 2022, specifying the stock limit quantities on edible oils and oilseeds upto June 30, 2022 with a view to provide impetus to the various steps taken by the Government to cool the prices of edible oil in the country.

The Stock Limit Order empowers the Union Government and all States/UTs to regulate storage and distribution of edible oils and oilseeds. This would also help the Government in checking hoarding of edible oils and oilseeds in the country. A Meeting was held by the Department of Food & Public Distribution on February 8, 2022, with all States/UTs for discussing the implementation plan of the above order dated 3rd February, 2022.

During the meeting it was emphasised that States/UTs authorities may enforce Stock Limit Quantities Order without causing any disruption in the supply chain and also any undue hardship to bonafide trade.

For edible oils, the stock limit specified is 30 quintals for retailers, 500 quintals for wholesalers, 30 quintals for retail outlets of bulk consumers i.e., big chain retailers and shops and 1000 quintals for its depots. Processors of edible oils would be able to stock 90 days of their storage capacities.

For edible oilseeds, the stock limit is 100 quintals for retailers, 2000 quintals for wholesalers. Processors of edible oilseeds would be able to stock 90 days production of edible oils as per daily input production capacity. Exporters and importers have been kept outside the purview of this Order with some caveats.

The order aims at regulating storage and

AgroPolicy, Oilseeds, Trade

Futures trading in mustard oil on NCDEX has been suspended and stock limits on oils and oilseeds have been imposed

In a bid to reign in the continuous rise in the cooking oil prices since the past one year, the basic duty on crude palm oil, crude soyabean oil and crude sunflower oil has been cut from 2.5 per cent to nil by the Government of India. The agri-cess on these oils has been brought down from 20 per cent to 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil.

Consequent to the above reduction, the total duty is now 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil. The basic duty on RBD palmolein oil has been slashed to 12.5 per cent from 17.5 per cent recently. The basic duty on refined soyabean and refined sunflower oil has been slashed to 17.5 per cent from the current 32.5 per cent. Before reduction, the agricultural infrastructure cess on all forms of crude edible oils was 20 per cent. Post reduction, the effective duty on crude palm oil will be 8.25 per cent, crude soyabean oil and crude sunflower oil will be 5.5 per cent each.

Apart from rationalising import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on NCDEX has been suspended and stock limits on oils and oilseeds have been imposed.

Despite international commodity prices being high, interventions made by Central Government along with State Governments’ pro-active involvement have led to a reduction in prices of edible oils. The department is regularly interacting with the oil industry associations and leading market players and has convinced them to reduce the MRP which will translate to passing on the benefit of duty reduction to end consumers. As per the trend from 167 price collection centres, edible oil prices have declined quite significantly in the range of Rs 5 and 20 per kg in the major retail markets across the country.

Major edible Oil players including Adani Willmar and Ruchi Industries have cut prices by Rs 15 -20 per litre. The other players that have reduced the prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and NK. Proteins.

The government has recently started to control the prices of oil concerning soya meal. Stock limit on soya meal which is a major source of protein and constitutes almost 30 per cent of livestock feed has been imposed that will be effective till June 2022 by including it in the Schedule to Essential Commodities Act, 1955. This will cool down the prices and improve supply.

Futures trading in mustard oil on NCDEX

AgroPolicy, Interaction

Union Minister of Agriculture Narendra Singh Tomar said that under the leadership of PM Modi, the Government wants to make India self-reliant in the field of palm oil.

The National Mission on Edible Oil- Oil Palm Business Summit for states other than North Eastern States has been inaugurated by the Union Minister of Agriculture Narendra Singh Tomar, in Hyderabad on December 28, 2021. Aiming to give wide spread information on newly launched centrally sponsored scheme on edible oils, the Government is organising business summits across the country. This is the second such summit of the Mission, the first was held in Guwahati for North Eastern states in early October this year.

Addressing the Business Summit, the Union Agriculture Minister Narendra Singh Tomar assured all the state governments that there will be no shortage of resources for the successful implementation of the National Mission on Edible Oil – Oil Palm. Tomar said that under the leadership of PM Narendra Modi, the Government wants to make India self-reliant in the field of palm oil.

Appreciating the efforts made by the Government of Telangana to increase palm oil production, Tomar said that he sees Telangana as an emerging leader in oil palm production.

Union Minister of State for Agriculture and Farmers’ Welfare Kailash Choudhary said “At present, we have to import edible oil. Today’s business summit will prove to be important to find a solution to this import.” Expressing his confidence in Mission, he said that with the help of scientists’ research, farmers’ hard work and the government’s support, this mission will achieve its target and will make a significant contribution in making India self-reliant. In order to boost the edible oils’ production, remunerative prices and assured procurement of oilseed crops is being done by the Government, he added.

Distribution of registration certificates for the Farmer Producing Organisations (FPOs) were also done on the occasion.

Union Minister of Agriculture Narendra Singh