Soyabean oil traders demand bypass for GM food imports

MUMBAI: The Centre’s bid to keep a check on the imports of genetically modified (GM) foods into India is posing problems for soyabean oil importers. The government’s rule (dated April7, 2006) that importers of GM soyabean oil will have to obtain prior clearance from the Genetic Engineering Approval Committee (GEAC) constituted under the Environment Protection Act, 1986, was deferred twice in 2006. It is once again up for expiry on March 31.

Importing from the largest producers of soyabean, Argentina and Brazil, requires that the contracts are entered into at least two to three months ahead inclusive of shipping time. Soyabean refiners in India are seeking a one-time approval certificate allowing imports of GM soyabean oil, or extension of the deadline to comply to prior approval of imports.

The Solvent Extractors Association of India has made a representation to GEAC regarding the same. The lack of any clear regulation in this regard is deterring imports of GM soya oil, and could lead to a shortage in April as no new contracts are being entered into after February due to the uncertainty.

When contacted, executive director, SEA, BV Mehta confirmed that a representation to review the matter has been made to GEAC. Officials of GEAC refused to comment on the issue.

More than two-third of India’s soyabean oil requirement is met through imports. It is a matter of concern as most of this degummed soyabean oil is crushed out of GM soyabean and comes from Argentina and Brazil. All the soyabean and soyabean oil produced in India are non-GM.

India’s production of soyabean oil is about 11 lakh tonne, while we import between 18 lakh and 20 lakh tonne.
In order to consider a one-time approval vis-a-vis imports of GM soyabean oil, the industry has been asked to obtain test results on a number of parameters from any of three laboratories, Central Food Technological Research Institute (CFTRI), Mysore, National Institute of Nutrition (NIN), Hyderabad and Shriram Institute of Industrial Research. However, some of these labs were unable to undertake testing of certain parameters, industry sources pointed out.

An official from an prominent multi-national company said, “The GEAC continued to add new specifications like conformity with Prevention of Food Adulteration Act, gyphosate residues in the oil and residues of refining.

But even as all the prescribed requirements had been fulfilled, the GEAC has requested that the testing process be re-started and has prescribed that CFTRI to undertake all the tests. This will take considerable amount of time.” The samples have been despatched to CFTRI in January.

As per the existing regulation, imports of soyabean oil from April 1’07 onwards will require GEAC’s prior approval. This would imply a delay as no new contracts are being booked. This could lead to a subsequent price rise. A similar situation occurred prior to July ‘06 when the notification of relaxation of imports of soyabean oil was to expire on July 4, ‘06.

This led to a serious price rise July onwards, following which an extension on soyabean oil imports was given until March 31, ‘07. In the two weeks until the notification for deference came out, the prices jumped by over $30 per tonne. The average price of soyabean oil in June ‘06 was $521 per tonne, and moved up to $552 per tonne in July.

deepa.krishnan@timesgroup.com