New Delhi: Solvent Extractors Association (SEA) on Friday urged the government to allow short-term imports of coconut oil and copra to tackle domestic price volatility, as coconut oil prices have tripled in the past year.
The industry body requested that the government take urgent action by permitting imports for an interim period of 6-12 months to manage the current crisis and retain consumer interest in coconut oil.
"We request the government to take urgent actions to address this situation by allowing the import of copra and coconut oil for the interim period," SEA said in a representation to concerned ministries.
Coconut oil prices have surged to over Rs 400 per kg at the wholesale level from around Rs 130 a year ago, prompting consumers to shift to alternative oils like palm and sunflower.
The association said India's coconut production has been under stress for two years due to pest attacks, resulting in a 40 per cent drop in yields.
"This demand for coconut oil may shift permanently," SEA warned, noting that consumer movement away from coconut oil could adversely impact prices of other edible oils and increase import dependency.
The body flagged concerns to Agriculture Minister Shivraj Singh Chouhan, Commerce Minister Piyush Goyal and Food and Consumer Affairs Minister Pralhad Joshi.
SEA said the measure would not adversely impact farmers but would stabilise prices and support them long-term. It noted that imported oil with duties would still cost the same as domestic prices, but increased availability would ease supply stress.
Kerala, a prime consumer market, is showing signs of turning away from coconut oil due to soaring prices. The association also warned that adulteration is becoming rampant due to higher prices, eroding trust in coconut oil.
"Once consumers move out of a particular oil, it is known to be difficult to get the demand back, and this has been witnessed in the past in other indigenous oils like groundnut oil," SEA said.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
