Budget 2024: FM promises oilseeds mission to boost domestic production
The Narendra Modi government has reiterated its goal of achieving self-sufficiency in oilseed. Finance Minister Nirmala Sitharaman, presenting the Budget for 2024-25, stated that the government is committed to implementing a ‘national mission for oilseeds’.
“To achieve pulse and oilseed self-sufficiency, we will improve production, storage, and marketing.” As announced in the interim budget, a strategy is being implemented to achieve ‘atmanirbharta’ for oilseeds like mustard, groundnut, sesame, soybean, and sunflower,” she stated.
Given the increasing consumption of edible oils, as disposal incomes rise and food habits change, relying on imports to meet demand puts a strain on the budget. Domestic production has improved, but it cannot close the supply gap.
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Explaining the provisions of Finance Bill 2024, the government stated that the exemption of basic customs duty on oilseeds (along with seeds of other planting materials such as vegetable seeds) will remain in effect until March 31, 2026.
Industry’s demands
The Indian Vegetable Oils Producers’ Association (IVPA) has been seeking capital expenditure incentives to help new entrants and existing players expand their operations.
It also advocated for a ban on refined oil imports to boost domestic manufacturing and local farmers.
To stimulate growth, the industry desired a production-linked incentive (PLI) scheme designed specifically for the edible oil and food processing sectors. It sought measures to close the gap between the MSP (minimum support price) of specific crops and the prices of processed products in order to ensure sustainability.
The industry urged the government to lift restrictions on the export of de-oiled rice bran (DORB) in order to boost profitability for processors and farmers alike.
It urged the government to implement a dynamic slab import duty system based on international prices, oilseed MSP, and the consumer price index.
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