BANGALORE, July 8: The Federation of Oilseeds Cooperatives and Growers of India (FECOG) has urged the union government to hike the import duty and curb flow of imported edible oil to protect the interests of the industry.

Speaking at the national conference of FECOG here the state agriculture minister C Byre Gowda said that government policies have been mostly detrimental to domestic growers and the oil industry. ``The unrestricted import of edible oil has led to dumping of the commodity in the domestic market. We have already asked the centre to come out with a comprehensive policy on the import of edible oil and oilseeds before the situation goes out of control,'' he said.

The state government has exempted the Karnataka Oilseeds Federation (KOF) from sales tax and has also given soft loans for the purchase tax paid to protect the growers' interests, said Byre Gowda. Elucidating this he said that the new agriculture policy introduced last year has brought in significant changes in the state, and to a large extent deregulated agricultural sector in order to make agricultural operations economically viable. Urging the state governments to opt for a uniform tax policy, he said that this has been done to help the federations become financially strong and ensure a level playing field vis-a-vis private trade. Similar concessions should be extended by other state governments to oil co-operatives, he added.

The minister also said that central institutions like National Diary Development Board (NDDB) among others should operate through oilseeds cooperatives and not pursue an independent course. This, he said would help the farmers in getting benefits from a single local agency.

Unless the cooperatives join hands with farmers and work with a commercial orientation the field will continue to be dominated by private players, said Byre Gowda.

Speaking on the occasion Venkatarao Nadagouda, chairman, FECOG said, oilseeds cooperatives were never given special concession by the centre. The industry has been competing and surviving amidst these circumstances, he added.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.