20/11/05 MUMBAI (The Economic Times)  -  Increase in the imports of edible oils has started to show its effect on the farmers who are getting low realisation for their produce, industry experts said, warning that condition can worsen if it is not checked.

"Farmers at the mandi are presently getting Rs 1,100 per quintal for their soybean produce which is very less. Strong measures by the government and private bodies are needed for better price realisation to the farmers," Soybean Processors Association of India Chairman Rajesh Agrawal said.

Re-negotiation of the edible oil import structure needs to be done by the government for the safeguard of the Indian farmers, he said.

Crude soybean oil customs duty is less at 45 per cent under WTO regulations compared to high crude palm oil custom duty at 85 per cent that promotes the import of soy oil apart from the international prices, he added.

It is the overall oil import that is affecting currently the prices and not only soybean but over a certain level further increase in imports of soybean oil would create a negative impact, he said.

It will be increased productivity at this stage that can help the farmers realise a better price for its produce, he said.

In comparison to the world average of 2.4 tonnes per hectare, the productivity in country is low at less then one tonne per hectare which needs to be scaled up through series of measures to be taken through public and private participation, he added.

SOPA targets at 1.5 tonnes per hectare of soybean productivity in next two to three years through well-adopted measures and will ask the Centre to grant seed subsidy to SOPA as granted to other private bodies, Agrawal said.

"There are farmers in the country who are producing two tonnes per hectare by adopting better irrigation facilities, good seeds and seed replacement," he said.

Prestige Foods Limited Managing Director Davish Jain agreed that increased imports of edible oil are affecting the domestic markets and productivity needs to be increased by the Indian farmer to overcome the effect.

"Availability of good quality seeds and seed replacement have to be taken up fast as the seed replacement is one-third of the world average standing at seven per cent with farmers using the produce for cultivation again," he said.

Representatives from the oil industry would be meeting the Secretary for Agriculture at Delhi on November 22, to take up the issues of productivity and irrigation