Edible oil refiners look to corrective measures from Govt next year
20.05.12
Characterised by low yields and poor policy support, edible oil industry faced yet another challenge last year – the decision of Indonesia to encourage their processing industry reducing duties on export of processed oil. This single decision threatens the very existence of Indian oil industry.
Rattled by this decision, the Indian industry wants immediate corrective measures to come to its rescue at least in 2012.
“It is not just for the interest of the industry. It in fact is needed to reduce huge oil bill that is assuming serious proportions. During November 2010 to October, 2011, the country must have imported 90 lakh tonnes of edible oil costing Rs 35,000 crores,” an office-bearer of Solvent Extractors’ Association of India, said.
There are15,000 oil mills, 600 solvent extraction units, 600 vegetable oil refineries and 250 vanaspati units in India. While the domestic turn over of the vegetable oil industry is over Rs1, 00,000 crore, import-export turnover is put at about Rs 50,000 crore a year.
Source: Hindu Business Line