1. Commodity News

SOPA Urges Govt to Roll Back Customs Duty Exemption on Edible Oils

Soybean Processors Association of India, or SOPA, is the only national level body in India that represents soybean processors, farmers, exporters, and brokers in their efforts to strengthen soybeans as a viable crop.

Shivam Dwivedi
Edible Oils
Edible Oils

The Soybean Processors Association of India (SOPA) has urged the Union government to gradually phase out the exemption from customs duty on edible oils in order to stem the fall in domestic soyabean prices.

SOPA Chairman Davish Jain stated in a letter to Union Minister of Commerce and Industry Piyush Goyal that recent policy initiatives, such as the reduction of customs duty on edible oils, have resulted in a 15-26 percent drop in the prices of both imported and domestic edible oils in the last month. The drop in edible oil prices has also contributed to a significant drop in domestic soyabean prices.

Jain went on to say that the drop in soyabean prices sends a negative signal to farmers during the peak sowing season for Kharif oilseeds. If prices continue to fall, some growing areas may shift to other crops, breaking the momentum built up over the last two years in oilseed production, he said, urging the government to gradually increase customs duty on edible oils to benefit growers while also increasing government revenue.

Meanwhile, soyabean planting has been slow, with 31.68 lakh hectares covered in the country as of June 17. This could be attributed to this year's slow monsoon.

According to the most recent SOPA data, soyabean has been planted in approximately 26.4% of last year's coverage, or 119.99 lakh ha. Soyabean has been planted in 9.53 lakh ha in Madhya Pradesh, 17.55 lakh ha in Maharashtra, and 1.97 lakh ha in Rajasthan.

About SOPA:

The Soybean Processors Association of India, or SOPA, is the only national-level body in India that represents soybean processors, farmers, exporters, and brokers in their efforts to strengthen soybeans as a viable crop. SOPA's main goal is to encourage the development and promotion of Soy-Based products in the interests of both farmers and processors.

SOPA was founded in 1979, with its headquarters in Indore, Madhya Pradesh, India's main soybean-growing region. SOPA is represented on all important committees, government bodies, export promotion departments, and ministerial advisory committees such as Commerce, Foreign Trade, Agriculture, and Foods, among others.

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