TNAU Warned For Import Tariff For Edible Oil
The Tamil Nadu Agricultural University has warned that if the import tariff for edible oil is not re-imposed in October, it will wreak havoc in the lives of oilseed farmers. According to a university release, the government had reduced the import duty on refined oils to 7.73 per cent so as to curb the soaring prices of essential commodities. It had also ordered duty-free import of crude vegetable oils. This policy had led to flooding of cheaper imported oil, with a disastrous effect on the oilseed farmers. This measure had benefited the consumers through lower price and increased per capita consumption. The relaxation of tariff made it possible to import the maximum quantity of edible oil at a cheaper rate, unlike in the previous years.
The import of edible oils during 2007-08 was expected to reach an all-time high of seven million tonnes. Data showed that all classes of the economy spent 8 per cent of the total food expenditure on edible oil in both the rural and urban areas. The middle- and low- income groups, who were effectively covered by the Public Distribution System, were not true beneficiaries of the zero import tariff. Next to food grains, it was oilseeds that occupied the prime position in terms of gross cropped area in many States. Due to the zero import tariff, there was a danger of further decline in oilseed price. The Minimum Support Price of many crops such as paddy, wheat and sugar had increased. But, in the case of oil seeds, the price kept going down.
The Domestic and Export Market Intelligence Cell (DEMIC) of the university reviewed the market and suggested that the government think of a holistic approach that would promote higher domestic production through subsidy and other incentives for farmers, besides re-imposing import tariff on edible oils. It has sought urgent action by the Union government to save the oilseed farmers’ families from doom.
