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Govt keen to avoid reliance on single veg oil

The government, while now examining a proposal to curb imports of soyoil from genetically modified soybeans, wants to avoid becoming exclusively reliant on palm oil, the food minister said on Thursday.

India, the world's largest edible oil importer, buys palm oil mainly from Malaysia and Indonesia and soyoil from South America.

"If we put restrictions on soyoil imports, it will be a monopoly on palm oils," Food Minister Shanta Kumar told Reuters. "We do not want that to happen."

Kumar said the government was studying all aspects of the proposal to restrict the inflow of genetically modified soyoil but did not say when a decision was expected.

The health ministry was considering the proposal which would later go to the law ministry, Kumar said.

Traders reported alarm in the market in March after Union Agriculture Minister Ajit Singh told a seminar there had been complaints of large-scale GM soyoil imports and said the government intended to curb the inflow.

Some traders say a ban could spur domestic prices and boost local oilseeds output, but it could also raise palm oil imports.

One approach suggested by traders is that instead of a ban the government should allow non-GM soyoil at a 45 per cent customs duty and GM oil imports at 75 per cent duty.

They say the government could also impose quantitative restrictions and seek labelling of GM and non-GM soyoil.

Commodity analysts say a ban on GM soyoils would be ill-timed as only last month India, after more than five years of debate and trials, allowed commercial production of transgenic cotton, the oil of which is consumed in the country.

India in October lowered the import levy on crude palm oil to 65 per cent from 75 per cent while it kept the duty on refined oil at 85 per cent and that on soyoil at 45 per cent.

Traders said edible oil imports in 2001-02 (Nov-Oct) could be around 4.1-4.2 million tonnes, against a record 4.83 million tonnes in 2000-01, mainly due to a better oilseeds crop.

They said India's soyoil imports in 2001-02 could be around 1.4 million tonnes, almost at the same levels as last year, despite lower overall imports.

India imported 2.95 million tonnes of palm oil in 2000-01.

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