Misallocation of Imported Oils

Misallocation of Imported Oils THERE have, of late, been a good many official statements expressing grave concern over imports of edible oils because of the large expenditure of scarce foreign exchange they involve as also because of their adverse impact on domestic prices of vegetable oils thereby hampering efforts at increased production of oilseeds/oils. Particular emphasis has been laid on phasing out imports to afford the needed protection to the growers. However, despite the staggering trade deficit and the growing compulsions of the admittedly difficult foreign exchange situation New Delhi has still to evolve a rational policy for the import of edible oils as also for their allocation, quantity-wise and price-wise, to the vanaspati industry and for the public distribution system which would subserve the much-desired twin objectives of minimising the wasteful use of foreign exchange and giving incentives to farmers by ensuring remunerative prices for oilseeds/oils.