SPEECH ON THE OCCASION OF THE “SEA AWARD FUNCTION” TO BE HELD ON 21ST SEPTEMBER, 2012 AT RENAISSANCE MUMBAI HOTEL CONVENTION CENTER, POWAI, MUMBAI.
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It gives me great pleasure to be amongst you on this auspicious occasion of the “Annual Awards Function” of the Solvent Extractor’s Association of India, honoring achievers in the field of processing and export of Solvent Extracted Oils, Oilcakes and Oil meal. This is the third time that I am attending the Association’s Annual Awards Function. I am happy about this continuity as this gives us an opportunity to mutually interact with the leaders of the industry, other stakeholders and policymakers on our concerns and constraints with a view to lay a proper road map for the overall development of the industry.
2. I must congratulate the President and the members of the Solvent Extractors Association for their contribution in the field of edible oils. With its huge network of solvent extraction plants, refineries, compound feed manufacturers and fatty acid plants, they have contributed to the growth of the sector and by this annual award function, the Association has created a suitable forum for its members to address problems and jointly find solutions. This brings about a spirit of togetherness within the industry, trade and allied groups, which is relevant in the context of emerging global economic order. I understand that the immense amount of data generated by the Association is also effectively utilized by all involved in this sector.
3. Agriculture in the country is by and large dependant on the monsoons. Most of the oilseed- producing states in the country are in rain-fed areas. A 20% deficit in the monsoons has resulted in a drop in oilseed production. As per the 4th Advance Estimates of the Ministry of Agriculture and Cooperation the estimated oilseed production for the year 2011-12 is 300.12 lakh tonnes as compared to 324.79 lakh tonnes in the previous year. The production of oils from these oilseeds is likely to be 71.25 lakh tonnes as compared to 76.27 lakh tonnes in the previous year indicating a decrease of about 6.6 %.
4. Similarly, area under cultivation of oilseeds has also shown a decrease during the current year. As per the Department of Agriculture & Cooperation the area sown as on August 2012 is 160.77 lakh hectares as against 167.43 lakh hectares during the same period in the previous year. This is in spite of the various schemes that are being implemented by the Government to increase the area under oilseed cultivation.
5. The growth and development of the edible oil industry is primarily dependant on the domestic production of oilseeds and its availability to the industry. The demand for edible oils during the year 2010-11 has been 181.53 lakh tonnes and the demand for the year 2011-12 is projected to be about 187 lakh tonnes.
6. The ever increasing gap between demand and availability of edible oils in the country forces the government to continue with the import of edible oils while continuing with the ban on exports. In the year 2010-11, the country had to import 83.71 lakh tonnes while in the current oil year i.e. 2011-12, 71.25 lakh tonnes has been imported till the month of July 2012. Import of edible oil is a necessity. Various policy measures such as keeping the import duty of crude edible oil at zero percent while that of refined oils at 7.5%, de-freezing of the tariff value on import of RBD Palmolein from USD 484 to align it with the current international price of USD 1053 have been implemented with the motive of augmenting the domestic availability as well as to give a boost to the refining industry.
7. Rising prices of edible oils have always been a point of concern for the Government. Prices of edible oils in the international market, especially Soya bean and Sunflower, have increased by 5.53 & 5.15 percent respectively during the last one month. Lower production of Mustard seed during the current Rabi season and the decrease in the Groundnut crop have contributed to rising prices. Keeping in mind the interests of the farmers, the MSP of oilseeds such as Groundnut, Soya bean and Sunflower seeds have been increased by 37, 32 and 32% respectively. This has also affected the prices of edible oils.
8. In order to provide relief to the consumers from rising prices, the scheme for distribution of edible oils to ration card holders at subsidized rates is being extended every year. The current allocation to the States/Union Territories has almost doubled to 6.82 lakh tonnes as compared to 3.24 lakh tonnes during the previous year.
9. I appreciate the various issues raised by the President, SEA in his speech. The Government is taking various initiatives for increasing the production of oilseeds thereby increasing the availability of edible oils in the country. The Ministry of Agriculture has prepared an extensive programme in the 12th Five-Year Plan for increasing production of oilseeds and enhancing oil palm cultivation in the country. The salient features of the programme are production and purchase of breeder seeds with involvement of ICAR and State Agricultural Universities, distribution of certified seeds through National Seeds Corporation, NAFED, KRIBCO, IFFCO, etc., supply of cheap and alternate fertilizers and distribution of farm implements. This will enable to increase the production and productivity of oilseeds from the present yield of 1000 kg. per hectare to 1431 per kg. per hectare which will in turn result in the increased production of oilseeds from 30 million tonnes to about 38 million tonnes by 2017.
10. Further, under a special programme on Oil Palm Area Expansion (OPAE), support in the form of 50% of cost is extended for a period of four years to oil palm growing farmers and for promotion of drip irrigation. Special emphasis on development of waste land, especially in the North East is expected to put an additional three lakh hectares of land under oil palm cultivation. A target of three lakh tonnes of oil from tree borne oilseeds is envisaged by the end of the 12th Five-Year Plan period. The Department is consulting State Governments for allowing local refineries in taking part in tenders for supply of refined palmolein to Central PSUs/State Governments under the Scheme for distribution of subsidized edible oil through PDS. The issue of increasing the quota for export of edible oils in branded consumer packs from 10,000 tonnes is also under consideration. So far as permitting the blending of multiple vegetable oils, the Department will take up the matter with FSSAI. As far as the issue of declaration of oil palm as a plantation crop is concerned, I may say that it is engaging the attention of the Government for a decision.
11. Friends, I am happy to note that the Solvent Extractors Association of India is honoring achievers in the field of processing and exports. Such awards induce the spirit of competitiveness, innovation and efficiency. I congratulate the winners and hope that this will encourage them to set higher goals in the future.
12. I take this opportunity to thank the President of The Solvent Extractors Association of India for giving me this opportunity to share my views with you all.
THANK YOU.
******
It gives me great pleasure to be amongst you on this auspicious occasion of the “Annual Awards Function” of the Solvent Extractor’s Association of India, honoring achievers in the field of processing and export of Solvent Extracted Oils, Oilcakes and Oil meal. This is the third time that I am attending the Association’s Annual Awards Function. I am happy about this continuity as this gives us an opportunity to mutually interact with the leaders of the industry, other stakeholders and policymakers on our concerns and constraints with a view to lay a proper road map for the overall development of the industry.
2. I must congratulate the President and the members of the Solvent Extractors Association for their contribution in the field of edible oils. With its huge network of solvent extraction plants, refineries, compound feed manufacturers and fatty acid plants, they have contributed to the growth of the sector and by this annual award function, the Association has created a suitable forum for its members to address problems and jointly find solutions. This brings about a spirit of togetherness within the industry, trade and allied groups, which is relevant in the context of emerging global economic order. I understand that the immense amount of data generated by the Association is also effectively utilized by all involved in this sector.
3. Agriculture in the country is by and large dependant on the monsoons. Most of the oilseed- producing states in the country are in rain-fed areas. A 20% deficit in the monsoons has resulted in a drop in oilseed production. As per the 4th Advance Estimates of the Ministry of Agriculture and Cooperation the estimated oilseed production for the year 2011-12 is 300.12 lakh tonnes as compared to 324.79 lakh tonnes in the previous year. The production of oils from these oilseeds is likely to be 71.25 lakh tonnes as compared to 76.27 lakh tonnes in the previous year indicating a decrease of about 6.6 %.
4. Similarly, area under cultivation of oilseeds has also shown a decrease during the current year. As per the Department of Agriculture & Cooperation the area sown as on August 2012 is 160.77 lakh hectares as against 167.43 lakh hectares during the same period in the previous year. This is in spite of the various schemes that are being implemented by the Government to increase the area under oilseed cultivation.
5. The growth and development of the edible oil industry is primarily dependant on the domestic production of oilseeds and its availability to the industry. The demand for edible oils during the year 2010-11 has been 181.53 lakh tonnes and the demand for the year 2011-12 is projected to be about 187 lakh tonnes.
6. The ever increasing gap between demand and availability of edible oils in the country forces the government to continue with the import of edible oils while continuing with the ban on exports. In the year 2010-11, the country had to import 83.71 lakh tonnes while in the current oil year i.e. 2011-12, 71.25 lakh tonnes has been imported till the month of July 2012. Import of edible oil is a necessity. Various policy measures such as keeping the import duty of crude edible oil at zero percent while that of refined oils at 7.5%, de-freezing of the tariff value on import of RBD Palmolein from USD 484 to align it with the current international price of USD 1053 have been implemented with the motive of augmenting the domestic availability as well as to give a boost to the refining industry.
7. Rising prices of edible oils have always been a point of concern for the Government. Prices of edible oils in the international market, especially Soya bean and Sunflower, have increased by 5.53 & 5.15 percent respectively during the last one month. Lower production of Mustard seed during the current Rabi season and the decrease in the Groundnut crop have contributed to rising prices. Keeping in mind the interests of the farmers, the MSP of oilseeds such as Groundnut, Soya bean and Sunflower seeds have been increased by 37, 32 and 32% respectively. This has also affected the prices of edible oils.
8. In order to provide relief to the consumers from rising prices, the scheme for distribution of edible oils to ration card holders at subsidized rates is being extended every year. The current allocation to the States/Union Territories has almost doubled to 6.82 lakh tonnes as compared to 3.24 lakh tonnes during the previous year.
9. I appreciate the various issues raised by the President, SEA in his speech. The Government is taking various initiatives for increasing the production of oilseeds thereby increasing the availability of edible oils in the country. The Ministry of Agriculture has prepared an extensive programme in the 12th Five-Year Plan for increasing production of oilseeds and enhancing oil palm cultivation in the country. The salient features of the programme are production and purchase of breeder seeds with involvement of ICAR and State Agricultural Universities, distribution of certified seeds through National Seeds Corporation, NAFED, KRIBCO, IFFCO, etc., supply of cheap and alternate fertilizers and distribution of farm implements. This will enable to increase the production and productivity of oilseeds from the present yield of 1000 kg. per hectare to 1431 per kg. per hectare which will in turn result in the increased production of oilseeds from 30 million tonnes to about 38 million tonnes by 2017.
10. Further, under a special programme on Oil Palm Area Expansion (OPAE), support in the form of 50% of cost is extended for a period of four years to oil palm growing farmers and for promotion of drip irrigation. Special emphasis on development of waste land, especially in the North East is expected to put an additional three lakh hectares of land under oil palm cultivation. A target of three lakh tonnes of oil from tree borne oilseeds is envisaged by the end of the 12th Five-Year Plan period. The Department is consulting State Governments for allowing local refineries in taking part in tenders for supply of refined palmolein to Central PSUs/State Governments under the Scheme for distribution of subsidized edible oil through PDS. The issue of increasing the quota for export of edible oils in branded consumer packs from 10,000 tonnes is also under consideration. So far as permitting the blending of multiple vegetable oils, the Department will take up the matter with FSSAI. As far as the issue of declaration of oil palm as a plantation crop is concerned, I may say that it is engaging the attention of the Government for a decision.
11. Friends, I am happy to note that the Solvent Extractors Association of India is honoring achievers in the field of processing and exports. Such awards induce the spirit of competitiveness, innovation and efficiency. I congratulate the winners and hope that this will encourage them to set higher goals in the future.
12. I take this opportunity to thank the President of The Solvent Extractors Association of India for giving me this opportunity to share my views with you all.
THANK YOU.
