The SEA, a major organization of oil traders, has instructed the government to distribute edible oil through the Public Distribution System (PDS) at subsidized rates. The Solvent Extractors Association of India (SEA) has urged the government to stop betting on oilseeds and edible oils in commodity exchanges and force it to trade contracts with mandatory distributions.
In addition, the Mumbai-based business firm said the government should abolish tariffs, reduce agro-cess on imports and reconsider customs reduction measures. In a letter to Food Secretary Sudhanshu Pandey, SEA President Atul Chaturvedi said, “In the last few months we have seen an unprecedented rise in the prices of all commodities not only in edible oils but around the world.” The reasons for the unprecedented increase have been discussed many times.
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The reason for this unprecedented growth is the La Niನಾa climate problems in Chinese buying, incentives, palm and soy producing regions, labor problems in Malaysia due to Kovid-19, biodiesel offensive in Indonesia jour and renewable fuels made from soybean added to oil in the United States and Brazil. He said that although there are signs that the oxen are moving out of business, only time will tell whether it is ‘short-lived’ or permanent.
But in order to cope with short-term price increases, the government should subsidize edible oils by Rs 30-40 per kg through the PDS, the SEA president said.
Currently, the central government only distributes food grains at a discount of Rs 1-3 per kg through PDS to more than 80 crore beneficiaries under the National Food Security Act. Chaturvedi stressed the need to curb betting in the oilseed / edible oils business at the exchanges, saying “when the price of oil is Rs 80-90 per kg”. Four percent fluctuations are allowed in commodity exchanges… Now that prices have practically doubled, we must allow only two percent fluctuations in a day. This will prevent betting. The exchange should be allowed to trade in contracts with mandatory deliveries because it can only remain active in the market. “Once the market is back to normal we can reconsider it because ula hoops are an integral part of commodity exchange,” he said.
The SEA recommends stabilizing the tariff value on edible oils at lower levels. “According to our estimates, reducing tariffs by $ 200 per tonne on import duty on edible oils at Rs 5,000 per tonne. . Farmers. “
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The SEA has urged the government to stop implementing the Essential Commodities Act because it could cause enough damage to the supply chain. The SEA said that in the long run, the government should increase oilseed farming in mission mode and create a buffer stock of edible oils to stabilize prices. The suggestions were made before a meeting of the Union Food Secretary on May 24 to discuss the ‘extraordinary rise in edible oil prices in India’.
