Higher oil imports, falling seed prices pinch sunflower growers
Farmers who have cultivated sunflower last summer to reap its seeds are in a piquant situation. Even as the oilseed harvest is nearly over, they do not find enough incentive to offload their pickings from the harvest.
By ET Bureau |
KOLKATA: Farmers who have cultivated sunflower last summer to reap its seeds are in a piquant situation. Even as the oilseed harvest is nearly over, they do not find enough incentive to offload their pickings from the harvest.
Taking a hit from the steep rise in edible oil imports in December, 2008, sunflower seed prices are now hovering at Rs 1,800-2,000 per quintal in various mandis in Maharashtra and Karnataka against its minimum support price (MSP) of Rs 2,215 per quintal.
The market has a hunch that prices of homegrown sunflower seeds may fall further when about 1.5 lakh tonne of crude sunflower oil from Argentina will land in the country next month. As of now, the sunflower seed price has crashed below the MSP level due to heavy inflow of crude sunflower oil in the past two months. Enjoying nil customs duty, its imports went up to 40,420 tonne in November-December, as against nil imports in the corresponding months last year.
Although the sudden spurt in crude sunflower oil imports has a direct bearing on prices of sunflower seeds, this is not the only trigger for erosion in the raw material���s price. Industry officials said like mustard seed, sunflower seed is also not getting the MSP due to a steep rise in the overall imports of all types of crude edible oils. Enjoying nil customs duty, total imports of crude edible oils doubled to 12.4 lakh tonne in November-December from 6.2 lakh tonne in the corresponding period last year.
Sunflower seed is mainly grown by small farmers. They are compelled to sell at distress price. Still, there is hardly any buyer. Local sunflower seed crushing industry is not in a position to buy and support the farmers as there is huge disparity in crushing of sunflower seed due to cheap and large-scale import of sunflower oil, according to Solvent Extractors��� Association of India (SEA). Steep rise in imports of edible oils has not only affected sunflower seed farmers, but the entire industry as well.
Due to higher imports, domestic solvent extraction units and refiners are not getting enough margin for the sustenance of their operation. This has compelled them to work under capacity even in this peak crushing season.
Taking a hit from the steep rise in edible oil imports in December, 2008, sunflower seed prices are now hovering at Rs 1,800-2,000 per quintal in various mandis in Maharashtra and Karnataka against its minimum support price (MSP) of Rs 2,215 per quintal.
The market has a hunch that prices of homegrown sunflower seeds may fall further when about 1.5 lakh tonne of crude sunflower oil from Argentina will land in the country next month. As of now, the sunflower seed price has crashed below the MSP level due to heavy inflow of crude sunflower oil in the past two months. Enjoying nil customs duty, its imports went up to 40,420 tonne in November-December, as against nil imports in the corresponding months last year.
Although the sudden spurt in crude sunflower oil imports has a direct bearing on prices of sunflower seeds, this is not the only trigger for erosion in the raw material���s price. Industry officials said like mustard seed, sunflower seed is also not getting the MSP due to a steep rise in the overall imports of all types of crude edible oils. Enjoying nil customs duty, total imports of crude edible oils doubled to 12.4 lakh tonne in November-December from 6.2 lakh tonne in the corresponding period last year.
Sunflower seed is mainly grown by small farmers. They are compelled to sell at distress price. Still, there is hardly any buyer. Local sunflower seed crushing industry is not in a position to buy and support the farmers as there is huge disparity in crushing of sunflower seed due to cheap and large-scale import of sunflower oil, according to Solvent Extractors��� Association of India (SEA). Steep rise in imports of edible oils has not only affected sunflower seed farmers, but the entire industry as well.
Due to higher imports, domestic solvent extraction units and refiners are not getting enough margin for the sustenance of their operation. This has compelled them to work under capacity even in this peak crushing season.
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