Mangaluru – The Solvent Extractors’ Association of India (SEA) has urged the Government to firmly uphold the minimum support price (MSP) for designated crops by implementing effective policy measures.
In a monthly letter to SEA members, President Sanjeev Asthana commended the Government for its decision to raise the MSP for all mandated rabi crops for the forthcoming marketing season. He characterized this significant increase, particularly for rapeseed, as a testament to the Government’s commitment to supporting oilseed farmers and bolstering domestic production.
However, Asthana emphasized that while the MSP hike is praiseworthy, it is essential that the Government provides robust support and facilitates timely procurement to ensure that farmers can benefit from these price increases. “Without adequate market support and timely procurement, farmers may struggle to realize these prices, limiting the benefit of the MSP hike,” he stated. To make the MSP meaningful, he insisted that market prices must consistently remain above MSP levels, with appropriate interventions from the Government when necessary.
Asthana also expressed gratitude for the Government’s recent decision to lift the ban on de-oiled rice bran (DORB) exports. He explained that this action would allow for the efficient use of surplus DORB stocks, enhance export opportunities, and reinforce India’s status as a dependable supplier in global feed markets. Furthermore, it stands to benefit rice bran processors and farmers by improving revenues and supporting increased production of rice bran oil, a crucial import substitution product.
In discussing international relations, Asthana referred to a recent SEA delegation visit to Russia, which aimed to assess the oil market landscape, build an exporter base, and strengthen trade ties between India and Russia. The delegation visited major cities, including Moscow, Voronezh, Kaliningrad, and St Petersburg, engaging with industry leaders like GAP Resurs, EFKO Group, RusAgro, Sodrugestvo, and Blago. “This study tour provided invaluable insights into the Russian vegetable oil industry and opened up new avenues for collaboration between India and Russia,” Asthana stated.
Regarding trade opportunities, he noted recent shifts in the global market, particularly the potential for India to expand rapeseed meal exports to China as the latter imposes duties and restrictions on Canadian imports. The SEA has called on the Government to collaborate with Chinese authorities to simplify registration norms and reduce procedural barriers that currently limit Indian engagement. Asthana argued that wider access to the Chinese market could help alleviate domestic stock pressures, support farmers, and enhance India’s standing as a reliable supplier in the global feed market.
On policy matters, he highlighted the association’s ongoing dialogue with the Government regarding issues impacting the competitiveness and stability of the edible oil sector. The influx of refined oil imports from Nepal under the South Asian Free Trade Area (SAFTA) at zero duty has disrupted local refining and reduced value addition, necessitating the implementation of stricter Rules of Origin and effective monitoring.
Moreover, he pointed out that restrictions on refunding accumulated Input Tax Credit under an inverted duty structure have hindered working capital, affecting liquidity and investment in the industry. Additionally, the extended suspension of futures trading in commodities such as mustard seed, soybean, and crude palm oil has undermined price discovery and risk management mechanisms, exposing the value chain to volatility.
Asthana confirmed that the SEA continues to engage with relevant ministries to seek timely resolutions to these concerns. He concluded that these policy amendments are essential for strengthening India’s refining capabilities, enhancing market efficiency, and progressing towards self-reliance in edible oils.
Published on October 16, 2025
