Govt may revisit import duty on edible oils after Diwali

New Delhi, Oct 22 (PTI) The government today said it mayreview import duty on edible oils after Diwali in view of thefall in global prices but ruled out lifting the ban onnon-basmati rice exports. "It is true that edible oil prices in the internationalmarket have been falling and its effect on domestic producersis likely. That's why we think we need to give a secondthought to it.... We will decide on it after Diwali," Foodand Agriculture Minister Sharad Pawar said here today. However, the minister also adopted a cautious approach."When it will fall below the minimum support prices, we willintervene in the market.... At the same time, we will have tosee that in pulses and oilseeds, there is a gap between demandand supply. So attention should be given to the fact that itwon't impact oilseed and pulses production," he said. The fall in global market has affected domestic edibleoil prices, which have gone down by Rs 8,000 per tonne to Rs20,000, the Solvent Extractors Organisation had said in aletter to the ministries of Agriculture, Finance and Commerce,urging for a re-imposition of import duty and lifting ofexports ban. Asked about the rationale behind continuing with exportsban when there is a fall in the prices, Pawar said, "We willstudy that. We have received recommendations from Gujaratabout two-three items. We are thinking on it." The curbs on non-basmati exports are also unlikely to belifted as of now, despite projections of bumper output. "No,no. The question of easing ban on non-basamati exports doesn'tarise.... We won't think about it as long as we have notprocured enough and well," Pawar said. However, the government may think of providing freshimpetus to non-basmati rice exports after Diwali as fears oflosing overseas markets to rival nations loom large. "We can think about it because India's share in theglobal basamati market should not be affected and we shouldfocus on the fact that nobody should take advantage out of ourshare. We will think about it after Diwali," Pawar said. The government may consider reducing the duties onbasmati exports, he added. The Centre has imposed a minimum export price (MSP) of1,200 dollars and a cess of Rs 8,000 per tonne on basamatishipments. The minister also ruled out extending more bonus to paddyfarmers in step with the demand made by some states. "See, everyone can ask but one has to see consumers'interest. I don't want that you should get rice in the openmarket at Rs 35 a kilo. one has to see that angle," he said. To further his point, the minister said even before thebonus was announced, Food Corporation of India had procuredmore compared with the last year. "Without bonus also farmershave given more to FCI. What does it indicate?" he asked. The government declared last week a Rs 50-bonus perquintal to paddy farmers. The MSP of common variety paddy hasbeen fixed at Rs 850 a quintal whereas that of the grade Avariety stands at Rs 880. Asked if the ban on the futures trading of certaincommodities will be lifted, the minister said, "We have notthought about it yet." PTI