The Indian Vegetable Oil Producers’ Association the apex body representing India’s edible oil refining industry, in its budget recommendations to the Union Minister of Finance Nirmala Sitharaman stressed on enhanced Budgetary Support for the National Mission on Oilseeds to help address the structural constraints in domestic oilseed production. The enhanced allocation will help meet 45% of edible oil requirement domestically by 2030–32.
In a letter, the association said the overall budgetary allocation for the National Mission on Oilseeds be enhanced from INR 21,000 crores to INR 30,000 crores.
“This upward revision is essential to address structural constraints in domestic oilseed production and to meet the objective of achieving edible oil self-sufficiency of approximately 45 percent by 2030–32.”
The enhanced allocation may be strategically deployed across the priority areas: high-yielding & climate-resilient seeds, technology upgradation and advancement in refining capabilities, modern irrigation systems, expansion into “rice fallow lands,” processing and post-harvest infrastructure, and price assurance and market linkages.
The association also said the budgetary outlay for the NMEO-OP be extended from its 2025-26 deadline to 2030-31.
“This three-year extension would be helpful to mitigate delays in the projects caused by sapling shortages and infrastructural challenges, ensuring the longer-term success of the mission and the targets set under the scheme.”
IVPA also highlighted that the restriction on Inverted Duty refunds specifically to the Edible Oil industry vide Notification No.
09/2022-Central Tax (Rate) dated 13.07.2022 be withdrawn with retrospective effect.
“The burden of ITC accumulation on all Edible Oil manufacturers will result in several players going out of business.”
With an increase in the GST rate on Coal from 5% to 18% in GST 2.0, the accumulation for the Edible Oil sector is expected to increase substantially.
