SEA Reports Significant Improvement in Oilseeds Sowing
The Solvent Extractors’ Association of India (SEA) has reported a significant improvement in the sowing of oilseeds this season compared to last year. In his monthly letter to members, Ajay Jhunjhunwala, SEA President, highlighted that India experienced uneven rainfall distribution until early last week. During the June-July period, nine states, including Jharkhand, Himachal Pradesh, Punjab, Haryana, Odisha, and Bihar, faced significant rain deficits ranging from 20-49%. In contrast, six states, including four in the southern peninsula, reported excess cumulative rainfall during June 1 – July 20.
Despite these variations, most oilseed-producing areas received sufficient rain to commence sowing. As of July 11, the sowing of oilseed crops covered over 14 million hectares, compared to just under 11.6 million hectares last year. Jhunjhunwala expressed hope for continued bountiful and well-distributed rain with the blessings of Lord Indra.
Oilmeals Export Faces Decline Amid Regulatory Challenges
Jhunjhunwala noted that oilmeals exports suffered a 9% decline during the April-June quarter of 2024-25. He attributed this drop to the ban on de-oiled rice bran. Suggesting that without this restriction, exports would have exceeded last year’s first-quarter figures. The current prices of de-oiled rice bran are low and are expected to decline further with the increased availability of dried distiller grain solids (DDGS). Which are also used in various feed formulations. Consequently, the SEA has appealed to the Government not to extend the prohibition beyond July 31, 2024.
Regulatory Changes and Import Challenges Impact Oil Industry
Jhunjhunwala also mentioned the Government’s plan to shift nutraceutical oversight from the Food Safety and Standards Authority of India to the drug regulatory authority. He expressed concerns that this move would significantly constrain the vegetable oil and oilseed industry. Which has developed and marketed various nutraceuticals. Furthermore, he pointed out that the domestic refining industry is struggling due to heavy imports of refined oils. This situation contradicts the Prime Minister’s ‘Make in India’ initiative. Leading to low capacity utilization in Indian refineries and resulting in job losses.
The SEA reports improved oilseed sowing this Kharif season despite uneven rainfall distribution. However, the industry faces challenges with declining oilmeals exports and potential regulatory changes. The domestic refining sector also struggles with heavy imports, impacting capacity and employment. Monitoring these developments is crucial for stakeholders.