MUMBAI, May 15. (Financial Times Limited) - THE Agriculture Minister, MrAjit Singh's flip-flop over restrictions on import of soyabean oilproduced out of genetically-modified (GM) soyabean has evoked a wide rangeof reaction- from cynicism to ridicule on the one hand and praise on theother- in the vegetable oil industry and trade circles.From a very strident stand on the subject taken in the last couple ofmonths, the minister now seems to have considerably diluted his views onthe desirability of imposing restrictions. He now holds that it istechnically not feasible to distinguish soyabean oil from GM and non-GMsources, leading to conclusion that he has given up his initial aggressivestand. Business circles are wondering about the reasons for change ofstance.An official in the Ministry of Health recently confirmed that work oncomprehensive legislation for labelling of GM products was going on andthat it would perhaps take a few months before the law is finalised giventhe fact that a wide range of imported agricultural products (both bulkand processed) are from GM sources.Mr. Ajit Singh's statement in the Lok Sabha on Monday that it was notpossible to distinguish between GM and non-GM soyabean oil by availableanalytical methods has brought cheer among importers of edible oil. Largequantities of soyabean oil from Argentina have been contracted for and theconsignments are expected to arrive at regular intervals in the comingmonths. Welcoming the minister's statement, Mr D.N. Pathak, ExecutiveDirector of Indian Vegetable Oil Processors Association told BusinessLine, "I am happy our stand is vindicated. We had represented to thegovernment that technically it was not feasible to test soyabean oil forGM traits. Imports can now continue without avoidable uncertainties".The solvent extraction industry which had been vocal in its opposition tolarge-scale edible oil imports did not extend support to the proposedrestriction on soyabean oil on the ground that imports helped a largenumber of its members utilise their refining capacity.Also, apprehensions were expressed that any move to restrict low-pricedlow-duty soyaoil would immediately benefit palm oil, and producers inMalaysia would take undue advantage of the situation by jacking up prices.Logically, restriction on imported soyabean oil should benefit domesticsoyabean producers; but none of the organisations representing farmers'interests even thought it fit to react.Interestingly, a processing industry representative pointed out that thepurpose of imposing restriction, namely an increase in local prices ofedible oils in general, had been achieved over the last several weeks evenunder the existing liberal policy and therefore, the proposed restrictioneven if not implemented would not hurt anyone.There are, however, voices of dissent and despair. A senior representativeof the vegetable oil sector, on condition of anonymity, expressed dismayat the way trade and industry bodies shifted their stand on short-termconsiderations."A strong case has been made out for negotiating an upward revision in theWTO-bound low rate of 45 per cent customs duty on soyabean oil. We couldlose out if the opportunity is not utilised. It is up to the industry andtrade as a whole to take the matter forward in a constructive way," hesaid.