SPEECH FOR MOS (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS FOOD & PUBLIC DISTRIBUTION ON THE OCCASION OF THE “SEA AWARD FUNCTION” TO BE HELD ON 23RD SEPTEMBER, 2011 AT RENAISSANCE MUMBAI HOTEL CONVENTION CENTER, POWAI, MUMBAI.


It gives me great pleasure to be among you on the occasion of the Annual Awards Function of the Solvent Extractor’s Association for honoring the highest processors of Oilcakes, Ricebran, Minor Oilseeds, Highest Exporters of Oilmeal and Highest Producer of Refined Rice Bran Oil for the year 2010-11.

Cultivation of oil seeds in the country is largely dependant on the monsoon, which has been good this year. Hence the oil year 2010-2011 has been very favorable for the Oil Industry. As per the Fourth Advance Estimates of the Ministry of Agriculture, the estimated oilseed production is about 311 lakh tons which is 62.18 lakh tons higher than the last year, 2009-10, an increase of about 25%. Production of oils from these oil seeds is likely to be about 72.69 lakh tons which is 13.81 lakh tons more than the previous year i.e an increase of about 23.5%.The Soyabean crop during 2010-11 is estimated at 126.56 lakh tons which is about 26.93 lakh tons higher than the 2009-10 crop. Mustard production is also likely to be higher than last year by about 10.59 lakh tons.

Despite the higher production of oilseeds and oils this year, there has been an increase in prices of edible oils in the country due to various reasons, domestic as well as international. One of the reasons that has contributed to the increase in the prices of oilseeds and edible oils is the increase in the Minimum Support Price. This is mainly done keeping in mind the interest of the agricultural community and as an incentive to farmers. The MSP is being revised every year. This incentive to farmers has to be increased every year because of increase in cost of inputs. But this increase in cost for incentivising farmers has to be balanced with the interest of the consumers who want lower prices. Price control of edible oils has always been the priority of the Government. To meet the gap between demand and supply, imports of edible oil have been allowed. About 50% of the demand for edible oils is met by imports. However, during the current oil year 58.29 lakh tons of edible oil have been imported as against 61 lakh tons during the corresponding period of 2009-10; a decrease of 4.6%. Better prospects of oilseed production in the current oil year has also facilitated sizeable increase in domestic crushing, reducing vegetable oil import requirement and is good for the domestic industry.

In order to augment the availability of edible oils in the country, export of edible oils has been banned since March 2008. The existing ban on export had been continued during 2009-2011 and now extended for a further period up to 30.09.2012. In a move to liberalize the imports of edible oils, the import duty on edible oils had been revised to zero percent for crude edible oils and to 7.5% on refined edible oils which continues to remain in force.

The implementation of the scheme for distribution of imported oils with a subsidy of Rs 15/-per kg since 2008 has to a great extent helped to moderate domestic prices of edible oils and benefits the poorer sections of society especially BPL households. This scheme has also been extended up to September 2012.

On the technology front, there is an ever increasing need for a multi pronged strategy with a focus on better technology for increasing production of edible oils. Induction of latest technology in edible oil sector is a must for its progress. Better production practices in sectors such as Safety, Health and Environment need to be adopted, with an aim to produce quality products at affordable prices.

I must congratulate the Solvent Extractors Association for their service to the industry. With a membership of over 800 units, not only it is a strong forum for the industry but also a interface with Government Agencies. I am happy to note that you are honoring the highest processors of Oilcakes, Ricebran, Minor Oilseeds and Highest Exporters of Oilmeal and Highest Producer of Refined Rice Bran Oil for the year 2010-11. Such awards will inculcate a spirit of healthy competition within the industry and will also act as an incentive for others to perform better in the future. While I congratulate the winners, I wish to remind them that they should be encouraged by such awards to raise their standards of excellence for serving the nation and society in its quest for health.

I wish to thank the President of the Solvent Extractors Association for inviting me to this forum and wish him all the best in future endeavors of this forum.