30/6/0/4 - The apex body has urged the Indian Government to fix a minimumvalue addition norm of 45 per cent to create a level playing field for theindigenous sector.

GIVEN the vulnerability of the country's agriculture in general andoilseeds cultivation in particular, in order to safeguard the livelihoodconcerns of our farmers, the Government must exclude the vegetable oilsector from international free trade agreements, industry leaders haveargued.

Following a meeting with Mr Kamal Nath, Commerce Minister, the NewDelhi-based Central Organisation for Oil Industry and Trade in arepresentation has urged the Government to fix a minimum value additionnorm of 45 per cent to create a level playing field for the indigenoussector, if exclusion of edible oils from FTA/PTA was not feasible .

The apex body has pointed out to the Minister that the livelihood ofmillions of farmers was at stake and that the country's import dependencein respect of vegetable oils was at an alarming 50 per cent.

Making a demand for negotiating an upward revision in customs duty onsoyabean oil (currently at WTO-bound peak of 45 per cent), theorganisation said yields in major supplying countries have increased withthe introduction of genetically-modified soyabean, giving such countriesadded advantage.

In India, oilseeds are cultivated in about 260 lakh hectares, mostly bysmall and marginal farmers without assured irrigation facilities andlargely dependent on monsoon. India is world's largest importer of edibleoil (51 lakh tonnes in 2002-03).

Mr K.M.L. Chhabra, Executive Director, told that the Commerce Ministerappreciated the concerns of the domestic industry and was fully seized ofthe implications unfettered trade agreements may have on the domesticsector.