SOPA seeks steep hike in customs duties to save domestic oilseeds sector

Indore(Team Newsbuddy) : Expressing grave concern over the detrimental effects of the surge in imported edible oils on the domestic oil seeds and edible oils sector, which is being caused by lower customs duty, the Soybean Processors Association of India (SOPA) has urged the Union Government to raise customs duties and impose an agriculture cess on imported edible oils to protect the domestic oilseed sector, 
In separate letters to Union Finance Minister Nirmala Sitaraman and Minister of Agriculture, Farmers Welfare, and Rural Development, Shivraj Singh Chauhan, the SOPA Chairman, Dr. Davish Jain, has asked for a notable rise in customs duties and an agriculture cess on imported edible oils. This move aims to boost domestic oilseed production, incentivize farmers towards sowing oilseeds, and help India achieve self-sufficiency in edible oils and oilseeds. Dr. Jain said that current low tariffs have resulted in a surge in cheap imports, impacting indigenous oilseed processing and production as per SOPA.
 He said the reduction in customs duties since  October 2021 has triggered an influx of cheap edible oil imports, skyrocketing from 130.68 lakh tons in 2021 to 158.37 lakh tons in 2023. This surge has crushed domestic prices, with edible oil prices plummeting from Rs 105.51/Kg in 2021–22 to Rs 85.52/Kg in 2024–25.
The SOPA Chairman said that farmers are abandoning oilseed cultivation and switching over to other crops. He said the majority of oilseeds in India, including mustard, groundnut, sunflower, and soybean are trading significantly below the MSP, leading to a potential collapse in domestic production and threatening India’s goal of achieving  ‘Aatma Nirbharta’ (self-reliance) in edible oils.
Underscoring the existential threat to domestic oilseed processors facing heavy financial losses and the risk of widespread industry collapse, Dr. Jain called for an immediate, sizable hike in customs duties on imported edible oils to their levels three years ago, to create a fair market for local producers. Dr. Jain said that higher customs duties would bolster government revenue, reduce import dependency, and lead to a resurgence in domestic production. He emphasized the urgent need for government intervention to avert a looming crisis that could devastate the domestic oilseed industry, lead to job losses, and erode the country’s self-sufficiency.