The Indian government has announced the removal of the 2023/24 duty-free import quota on sunflower oil, a move that has been met with mixed reactions from the industry.
The Indian government has announced that it will no longer offer a duty-free import quota on sunflower oil in the 2023/24 fiscal year. The move is part of a broader effort to boost domestic oilseed cultivation and reduce India's reliance on imports.
The government's decision to remove the import quota has been met with mixed reactions from the industry. While some stakeholders have welcomed the move as a step towards promoting domestic production, others have expressed concerns about the impact on the edible oil industry.
Sunflower oil is one of the most popular cooking oils in India, accounting for around 10% of the country's edible oil imports. The Indian government has been attempting to reduce the country's reliance on imported edible oils, which currently account for over 60% of the domestic market.
The removal of the duty-free import quota on sunflower oil is expected to encourage domestic cultivation and production of oilseeds. The government has also announced a series of measures to support domestic production, including increasing the minimum support price for oilseeds and providing subsidies for the development of new technology and infrastructure.
However, some industry players have expressed concerns about the impact of the move on the edible oil industry. They argue that the removal of the duty-free import quota will increase the cost of imported sunflower oil and lead to higher prices for consumers.
In addition, there are concerns about the availability of domestic oilseed supply. The Indian oilseed industry has struggled to compete with the prices of imported oilseeds, and it remains to be seen whether the measures announced by the government will be enough to boost domestic production.
Despite the mixed reactions to the government's decision, the move is part of a broader effort to reduce India's reliance on imported edible oils and promote domestic production. The Indian government has set a target of achieving self-sufficiency in edible oils by 2025, and the removal of the duty-free import quota on sunflower oil is a step towards achieving that goal.
In conclusion, the removal of the duty-free import quota on sunflower oil is a significant move by the Indian government towards promoting domestic production of oilseeds. While there are concerns about the impact on the edible oil industry and consumer prices, the government's measures to support domestic production will be crucial in achieving self-sufficiency in the edible oil sector
