The Solvent Extractors’ Association of India (SEA) has stated that the recent revision of Goods and Services Tax (GST) rates is expected to improve the competitiveness of Indian edible oils and meals in both domestic and international markets.
In his monthly letter to SEA members, President Sanjeev Asthana noted that the government has addressed a longstanding industry demand by simplifying the GST structure and rationalizing rates, including a reduction to 5 percent on key byproducts of vegetable oils and oilseeds. “This forward-looking step will ease working capital pressure, improve affordability for consumers, boost consumption, and enhance the competitiveness of Indian edible oils and meals in both markets,” he emphasized.
Additionally, the government has granted manufacturers, packers, and importers the ability to revise the maximum retail price (MRP) on unsold stock produced or imported before the GST revision, valid until March 31, 2026. The original MRP must remain visible, and any changes must strictly align with the GST updates. Asthana explained that this flexibility will help clear existing inventories, reduce packaging waste, lessen compliance burdens, and ensure fair pricing for consumers, ultimately benefiting the industry.
In relation to the monsoon, Asthana referenced the Indian Meteorological Department’s (IMD) latest extended forecast, predicting above-normal rainfall in central and peninsular India over the next two weeks, which may include heavy rainfall in certain regions. “This is encouraging for oilseed crops such as soybean, groundnut, sunflower, and mustard, as adequate moisture will support growth and yield. However, excessive rain may lead to challenges like waterlogging and harvesting delays,” he cautioned, urging members to stay alert and collaborate closely with farmers to protect crop potential.
Regarding de-oiled rice bran, Asthana mentioned the government’s ban on its export implemented in July 2023 due to concerns about domestic availability. SEA has repeatedly requested the government to reconsider this ban based on current market conditions. Lifting the restriction, he argued, would allow the industry to manage surpluses more efficiently, improve export opportunities, and bolster India’s reputation as a reliable supplier in international markets.
He also highlighted that the Union Ministry of Agriculture and Farmers’ Welfare has appointed SEA to the National Steering Committee of the National Mission on Edible Oils – Oilseeds (NMEO-OS), providing an opportunity for SEA to help shape policies aimed at strengthening the edible oilseeds sector.
During SEA’s 54th annual general meeting on September 24, three memoranda of understanding (MoUs) will be signed between SEA, Solidaridad, the Asian Palm Oil Alliance (APOA), the Indonesian Palm Oil Association (IPOA-GAPKI), and the Council of Palm Oil Producing Countries (CPOPC). These agreements aim to facilitate collaboration in promoting sustainable practices, trade, knowledge exchange, and joint initiatives in the palm oil and edible oil sectors, including support for smallholders and policy cooperation.
Asthana announced plans to expand mustard model farms during the upcoming rabi season, with more than 3,000 farms to be established. He praised Angshu Mallick, CEO and MD of AWL Agri Business Ltd, for extending financial support as the lead sponsor of this program, highlighting its potential to enhance productivity, promote self-sufficiency, and equip Indian farmers with modern, efficient agricultural practices.
Published on September 22, 2025.
