Key Development 

The Indian Vegetable Oil Producers Association (IVPA) has urged the central government to revisit its policy on duty-free refined oil imports from Nepal. The association warns that these imports are flooding northern and northeastern Indian markets, undermining domestic processors and hurting oilseed farmers. IVPA stated that the current import regime allows Nepalese oils to undercut Indian refiners. This not only weakens local processors but also pushes down farmgate prices for oilseeds and leaves refining facilities underutilised.

IVPA Recommends Public Agency Oversight of Imports

To tackle the issue, IVPA proposed routing all zero-duty oil imports through public-sector bodies like the National Agricultural Cooperative Marketing Federation of India (NAFED). This move, the association believes, will help regulate volumes and ensure fair market practices. The body also called on the government to restore standardised pack sizes for edible oils. IVPA said the current range of packaging options confuses consumers and makes it hard to compare prices accurately. In its outlook, IVPA noted that palm oil prices remain stable and continue to trade at a discount to soybean oil. It also predicted that Indian mustard prices may ease as government-held stocks enter the market. On the global front, sunflower oil prices could fall as production rebounds in the Black Sea region.

IVPA Calls for Stronger Domestic Oilseed Production

With global demand for biofuels on the rise, the association stressed the need to boost domestic oilseed cultivation. It urged the government to support farmers with incentivised Minimum Support Prices (MSPs) to secure long-term supply and food security.

Source: Business Standard