Edible oil imports: SEA urges freight subsidy and oilmeal export support amid West Asia conflict

The Solvent Extractors Association of India (SEA) raised concerns about trade risks linked to the West Asia conflict. SEA said the disruption was affecting edible oil imports and domestic price stability. The industry body urged the Centre to support the sector during the uncertainty. SEA also asked for steps to reduce costs and keep supplies moving smoothly.

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SEA sent a letter to the Union Finance Minister, Commerce Minister, Agriculture Minister and Food Minister. The letter described how the West Asia conflict was influencing the edible oil industry. SEA requested policy support to help the sector manage the current strain. SEA said the government should act to help the industry tide over the crisis.

West Asia conflict and edible oil import freight subsidy

SEA urged the Centre to subsidise freight costs for edible oil imports. SEA linked this demand to pressure on the domestic oilseed and vegetable oil sector. The body said uncertainty around key maritime routes was raising costs. SEA said these shifts were also adding to logistical hurdles for importers.

The association also sought priority berthing for vessels carrying essential commodities. SEA included crude edible oil vessels under this request. SEA said faster berthing would support a steady flow of imports. It said such measures would help maintain a smoother supply chain during disruptions.

West Asia conflict and edible oil export incentives for oilmeals

SEA also asked for stronger incentives for exports of agricultural products like oilmeals. It said an interest subvention of 5 per cent for oilmeal exports should be considered. SEA linked export support to the wider stress in commodity markets. The body said incentives could offset rising costs and uncertainty.

SEA further sought adequate and affordable working capital support for the sector. It said businesses were facing higher cost burdens due to volatility and supply issues. SEA said geopolitical developments in West Asia were disrupting global commodity markets. SEA added that India’s edible oil sector was among the most affected areas.

SEA said India’s heavy reliance on edible oil imports was increasing exposure to these shocks. It said ongoing uncertainty was driving price swings and complicating shipments. SEA said supply chain costs were rising as routes remained unpredictable. SEA said its letter listed sector-specific issues and possible effects on availability and prices.

With inputs from PTI