Industry disappointed with new MSP for oilseeds

Expressing disappointment over "only 2-9 per cent" hike in the minimum support price for oilseeds, the edible oil industry asked the government to reconsider the decision and raise it in line with pulses.

"We are greatly disappointed with the government's decision to raise the support price for oilseeds by only 2-9 per cent, while they have given 15-30 per cent hike for pulses," Solvent Extractors' Association president Ashok Sethia said in a statement.

Terming the hike as "stepmotherly treatment" to the oilseeds sector, Sethia said that both oilseeds and pulses are in short supply and need support in the form of a higher MSP to encourage their production in the country.

"Oilseeds production and acreage are going down or have remained stagnant for the last five years and imports of oils have risen over 100 per cent in the same period. They have reached alarming levels, becoming a threat to the food security of the nation," Sethia said.

India imported a record 8.6 million tonnes of vegetable oils in the 2008-09 oil year (November-October) and is expected to import nine million tonnes this year. At the same time, production of oilseeds declined to 25.4 million tonnes in the 2009-10 crop year against 27.7 million tonnes in the previous one.

"There is still time for sowing, and we urge the government to reconsider the support price for oilseeds and raise it in line with pulses," Sethia said.

However, the Soyabean Processors Association of India (SOPA), a leading industry body, felt satisfied with the increase in the MSP of oilseeds.

"We are content with the hike in MSP. It is good enough to encourage farmers to grow more oilseeds, and since it is partly in tune with industry recommendations, we think it is a balanced decision," Soyabean Processors Association of India (SOPA) spokesperson and coordinator Rajesh Agarwal said.

Yesterday, the government announced the MSPs of kharif crop for the 2010-11 season, raising that for oilseeds by Rs 45-200 a quintal over the previous year. For soyabean, it was raised by Rs 50 to Rs 1,440 a quintal.

The zero duty on import of edible oils and only 7.5 per cent on refined oils has increased their inbound shipments.

The retail prices for cooking oil is at a comfortable level of Rs 50-60 per litre.