Sharad Pawar seeks withdrawl of incentives to oilmeals exports | business | Hindustan Times
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Sharad Pawar seeks withdrawl of incentives to oilmeals exports

business Updated: Aug 02, 2009 13:52 IST

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Ahead of the foreign trade policy, Agriculture Minister Sharad Pawar has sought withdrawal of incentives on exports of oilmeals like soyabean meal in the backdrop of rising cost of poultry feed, a Commerce Ministry official said.

However, the Commerce Ministry is not inclined to de-incentivise these exports on the ground that over all exporting scenario of the country is facing challenging times.

In a letter to the Commerce Minister Anand Sharma, Pawar said the benefits like those in Vishesh Krishi and Gram Udyog Yojana (VKGUY) given to oilmeals including soyameal should be withdrawn, the official said.

Under the VKGUY, exporters of the commodity are given a transferable scrip equivalent to 5 per cent of freight-on board value of the exports as an incentive to compensate for the transport cost.

According to industry experts, the prices of poultry feed have increased by over 15-20 per cent in the last 6 months. India’s export of oilmeals in 2008-09 has risen by 14.77 percent to record Rs 8,341 crore as against Rs 7,109 crore in 2007-08.

China, Indonesia, South Korea, Malaysia and Vietnam are the major importers of oilmeals.

VKGUY benefits were given in the previous five year FTP. The new FTP is scheduled to be unveiled later this month.