MARKET DEVELOPMENT
NAFED lines up big plans to import edible oil
NAFED lines up big plans to import edible oil
29/5/07 (PTI) New Delhi, : The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) has decided to actively trade in imported edible oils after failing to procure sufficient quantity of mustard seeds from domestic market due to high price.
"We will increase our volume of import of edible oils as there is a demand for them in the country," NAFED Managing Director Alok Ranjan said.
NAFED, the nodal agency for procuring oilseeds and pulses at the minimum support price (MSP) to prevent distress sale, has imported 15,000 tonnes of edible oil till now, he said, adding that palm oil accounted for 90 per cent of this import.
Ranjan said the cooperative would import both soya and palm oil, the two major imported oils having a share of over 95 per cent in total edible oil imports.
Though, most of the oils imported would be sold to state governments (for their oil cooperatives), millers would also be sold the imported oil, he said.
"There is no target fixed for the quantity of import. We will import according to market demand," he said.
NAFED has this year procured only 21,000 tonnes of mustard seeds against 21 lakh tonnes bought last year.
"The low procurement of mustard by Nafed is because of higher price of the commodity in the domestic market against the MSP fixed by the government," a government official said.
The MSP for mustard, which is grown in the Rabi season, is Rs 1,715 per quintal whereas the current market price is in the range of Rs 1,850-1,900 per quintal, a trader said.
The current high in market prices of mustard seeds is attributed to a production shortfall.
According to the third advance estimate of government, mustard production is expected to dip by 15 per cent to 669 lakh tonnes this year against 788 lakh tonnes last year.
Although, NAFED procured a record 21 lakh tonnes because of market price going below the MSP last year, it could not prevent a dip in acreage this year as many farmers in Rajasthan and Madhya Pradesh shifted to more profitable wheat and chana.
However, better availability of mustard seeds from NAFED stocks led to more crushing and supply during the first half of the current oil year and it is one of the main reasons for decline in imports of edible oil, Solvent Extractors Association of India (SEA) recently said.
Edible oils import during the first six months of the oil year 2006-07 dived by five per cent to 17.07 lakh tonnes as against 18.01 lakh tonnes in the year ago period. Oil year runs from November to October.
"We will increase our volume of import of edible oils as there is a demand for them in the country," NAFED Managing Director Alok Ranjan said.
NAFED, the nodal agency for procuring oilseeds and pulses at the minimum support price (MSP) to prevent distress sale, has imported 15,000 tonnes of edible oil till now, he said, adding that palm oil accounted for 90 per cent of this import.
Ranjan said the cooperative would import both soya and palm oil, the two major imported oils having a share of over 95 per cent in total edible oil imports.
Though, most of the oils imported would be sold to state governments (for their oil cooperatives), millers would also be sold the imported oil, he said.
"There is no target fixed for the quantity of import. We will import according to market demand," he said.
NAFED has this year procured only 21,000 tonnes of mustard seeds against 21 lakh tonnes bought last year.
"The low procurement of mustard by Nafed is because of higher price of the commodity in the domestic market against the MSP fixed by the government," a government official said.
The MSP for mustard, which is grown in the Rabi season, is Rs 1,715 per quintal whereas the current market price is in the range of Rs 1,850-1,900 per quintal, a trader said.
The current high in market prices of mustard seeds is attributed to a production shortfall.
According to the third advance estimate of government, mustard production is expected to dip by 15 per cent to 669 lakh tonnes this year against 788 lakh tonnes last year.
Although, NAFED procured a record 21 lakh tonnes because of market price going below the MSP last year, it could not prevent a dip in acreage this year as many farmers in Rajasthan and Madhya Pradesh shifted to more profitable wheat and chana.
However, better availability of mustard seeds from NAFED stocks led to more crushing and supply during the first half of the current oil year and it is one of the main reasons for decline in imports of edible oil, Solvent Extractors Association of India (SEA) recently said.
Edible oils import during the first six months of the oil year 2006-07 dived by five per cent to 17.07 lakh tonnes as against 18.01 lakh tonnes in the year ago period. Oil year runs from November to October.