By Bl Mangaluru Bureau

Copyright thehindubusinessline

The Solvent Extractors’ Association of India (SEA) has said that the revision in GST rates will enhance the competitiveness of Indian edible oils and meals in both domestic and international markets.

In his monthly letter to the members of SEA on Monday, Sanjeev Asthana, SEA President, said the government has addressed a long-standing demand of the industry by simplifying the GST structure and rationalizing rates, including a reduction to 5 per cent on key byproducts of vegetable oils and oilseeds.

“This forward-looking step will ease working capital pressure, improve affordability for consumers, boost consumption, and enhance the competitiveness of Indian edible oils and meals in both domestic and international markets,” he said.

Further, the government has allowed the manufacturers, packers, and importers to revise the MRP on unsold stock manufactured or imported before the GST revision, up to March 31, 2026. The original MRP must remain visible, and the revision should strictly reflect the GST change.

He said this flexibility facilitates smooth clearance of existing inventories, prevents wastage of packaging, reduces compliance burdens, and ensures consumers benefit from fair pricing, further supporting the industry.

Monsoon update

Referring to IMD’s latest extended forecast, he said it indicates above-normal rainfall in central and peninsular India over the next two weeks, with some regions likely to face heavy spells.

“This is encouraging for oilseed crops such as soybean, groundnut, sunflower and mustard, as adequate moisture will support growth and yield. At the same time, excessive rains may pose a few minor challenges like waterlogging and harvesting delays. We urge members and stakeholders to remain alert, plan contingencies, and work closely with farmers to safeguard crop potential,” Asthana said.

De-oiled ricebran

He said the government had imposed a ban on the export of de-oiled ricebran in July 2023, citing concerns over domestic availability. SEA has repeatedly appealed to the government requesting reconsideration of this ban, given the current market conditions. Lifting the restriction would enable the industry to efficiently manage surplus, enhance exports, and strengthen India’s position as a reliable supplier in international markets.

He said this step will support farmers and processors, improve trade opportunities, and contribute to the overall growth and competitiveness of the edible oil sector.

Stating that the Union Ministry of Agriculture and Farmers’ Welfare has nominated SEA to the National Steering Committee of the National Mission on Edible Oils – Oilseeds (NMEO-OS), he said this will provide SEA with an opportunity to further contribute to shaping policies and programmes for strengthening the edible oilseeds sector.

The SEA President said that three memoranda of understanding (MoU) will be signed between SEA, Solidaridad, Asian Palm Oil Alliance (APOA), Indonesian Palm Oil Association (IPOA-GAPKI), and Council of Palm Oil Producing Countries (CPOPC) during SEA’s 54th annual general meeting on September 24.

These MoUs will establish a framework for collaboration to promote sustainable practices, trade, knowledge exchange, and joint initiatives in the palm oil and edible oil sectors, including support for smallholders, policy cooperation, and development of a sustainable palm oil ecosystem in India.

By aligning interests across producing and consuming nations, this partnership will strengthen Asia’s collective role in ensuring responsible and sustainable palm oil trade, he said.

Asthana said that it has been agreed to expand mustard model farms during the ensuing rabi season and establish over 3000 such farms. Congratulating Angshu Mallick, CEO and MD of AWL Agri Business Ltd, for extending financial support as the lead sponsor for the programme, he said this important initiative will play a pivotal role in enhancing productivity, promoting self-sufficiency, and equipping Indian farmers with modern, efficient farming practices.

Published on September 22, 2025