government Archives

Government Urges Edible Oil Processors To Hold Retail Prices…

17 September 2024
by admin

New Delhi: The government has asked edible oil processors not to hike retail prices following a recent increase in import duties, as there is an enough stock of cooking oils that were shipped at a lower duty.

The food ministry said the stocks imported at lower duties would easily last 45-50 days, and therefore the processors should refrain from increasing maximum retail prices (MRP).

Last week, the Centre implemented an increase in the basic customs duty on various edible oils to support domestic oilseed prices. Effective September 14, 2024, the basic customs duty on crude soyabean oil, crude palm oil, and crude sunflower oil has been raised to 20 per cent from nil, making the effective duty on crude oils to 27.5 per cent.

Additionally, the basic customs duty on refined palm oil, refined sunflower oil, and refined soyabean oil has been increased from 12.5 per cent to 32.5 per cent, making the effective duty on refined oils to 35.75 per cent.

On Tuesday, Food Secretary Sanjeev Chopra chaired a meeting with the representatives from the Solvent Extraction Association of India (SEA), Indian Vegetable Oil Producers’ Association (IVPA) and Soyabean Oil Producers Association (SOPA) to discuss the pricing strategy.

“The leading edible oil associations were advised to ensure that the MRP of each oil is maintained till the availability of edible oil stocks imported at 0 per cent and 12.5 per cent Basic Customs Duty (BCD) and take up the issue with their members immediately,” an official statement said.

“The central government is also aware that there is close to 30 lakh tonnes stock of edible oils imported at lower duty which is sufficient for 45 to 50 days domestic consumption,” it added.

India imports a large quantity of edible oils to meet domestic demand. The dependence on imports is more than 50 per cent of total requirements.

The decision to hike import duties is part of the government’s ongoing efforts to bolster domestic oilseed farmers, especially with the new soybean and groundnut crops expected to arrive in markets from October 2024, the food ministry said.

“The decision follows comprehensive deliberations and is influenced by several factors: increased global production of soybean, oil palm, and other oilseeds; higher global ending stocks of edible oils compared to last year; and falling global prices due to surplus production.

“This situation has led to a surge in imports of inexpensive oils, exerting downward pressure on domestic prices. By raising the landed cost of imported edible oils, these measures aim to enhance domestic oilseed prices, support increased production, and ensure that farmers receive fair compensation for their produce,” the ministry explained.

India imports palm oil from Malaysia and Indonesia, while the country imports soyabean oil from Brazil and Argentina. Sunflower oil comes mainly from Russia and Ukraine.

Science & Environment

Government’s schemes boost domestic electric vehicle manufacturing – Times…

25 August 2024
by admin

NEW DELHI: The government‘s initiatives, including the production-linked incentive (PLI) scheme with an approved outlay of Rs 25,938 crore, have boosted the domestic electric vehicle (EV) manufacturing industry.
The Centre has has approved 50 out of the 74 applications received from automakers for the PLI schemes in the EV sector while the remaining 24 are under review.
The PLI scheme offers automakers a government grant of 13-15 per cent of the annual sales value of EVs, helping to increase sales and offset the higher costs of investing in new technologies.
Investments reached Rs 17,896 crore and incremental sales crossed Rs 3,370 crore (up to March 31) according to the approved applicants under the main PLI scheme.
The government has also launched other key initiatives, such as the PLI Advanced Chemistry Cell (ACC) scheme with an approved outlay of Rs 18,100 crore for 50 GWh, the Electric Mobility Promotion Scheme (EMPS) scheme with an outlay of Rs 778 crore, and the SMEC initiative aimed at attracting global EV investments with a minimum commitment of Rs 4,150 crore.
The adoption of electric vehicles (EVs) in India has seen a significant surge, particularly in the two-wheeler and three-wheeler segments, following the government’s decision to extend the Electric Mobility Promotion Scheme (EMPS) subsidy until September 30. A report by BNP Paribas India highlighted that electric two-wheeler volumes crossed the 1,00,000 mark last month while electric three-wheeler volumes reached a new peak of 63,000.
BYD market share in the electric passenger vehicle (EPV) segment increased while MG’s declined, while Tata Motors maintained a relatively stable position. The electric three-wheeler (E3W) segment also witnessed changes, as Mahindra & Mahindra and Bajaj Auto increased their market share. Bajaj Auto also increased its market share in electric two-wheeler segment.
According to recent data provided by the Centre, the number of EVs registered in FY24 increase by 42.06 per cent compared to the previous fiscal year, FY23, indicating a growing trend in EV adoption across the country.

Science & Environment

Banks told to speed up IBC resolutions – Times…

28 July 2024
by admin

NEW DELHI: Taking strong exception to slow action under the Insolvency & Bankruptcy Code (IBC), govt has started monitoring the top 20 cases, while also asking bank chiefs to closely follow the top 20 cases with their banks. This has led to movement in Jaiprakash Associates and Amtek Auto, where lenders were seen to be dragging their feet.
“Banks have been citing delays in the tribunal, but we discovered that they were themselves to blame.They were found to be discussing loan settlements in some cases when the issue had been taken up under IBC,” a top official said, suggesting a nexus between promoters and bankers in some cases.
Take for instance, Jaiprakash Associates, promoted by the Gaurs. In 2017, it was in the second batch of high-profile cases identified by the finance ministry and govt that was to be taken up for insolvency resolution. While Jaypee Infra was pursued, banks led by ICICI Bank, were seen to be moving slowly in the Allahabad bench of NCLT, despite SBI filing another petition. It was only after the govt decided to step in that the bankers pursued it.
Officials said Nirmala Sitharaman is herself reviewing some of the cases. Financial services secretary Vivek Joshi, IBBI chairman Ravi Mittal and corporate affairs secretary Manoj Govil have been monitoring the cases and asking banks to move swiftly as delay results in significant value erosion and lower the overall resolution and recovery.
Bankers have often blamed NCLT and legal system, along with promoters, for delays. But a case wise analysis by the officials showed that in several cases banks had sought adjournments and sought to put the blame on promoters. Final resolution has been done in 947 of the 7,567 cases admitted in NCLT although the finance ministry is taking credit for several cases, where the companies decided to clear the dues the moment one of the aggrieved creditors moved the tribunal (see graphic).
Recently, Amtek Auto promoter Arvind Dham was also arrested by the Enforcement Directorate in a loan fraud case following a Supreme Court order.
In the budget, Sitharaman announced measures to strengthen IBC and also provide a fresh boost to debt recovery tribunals (DRTs). Officials said govt intends to add more DRTs and Debt Recovery Appellate Tribunals, given the large and growing number of pending cases.