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Saturday, September 25, 2021

Why do edible oil woes persist?

The edible oilseed manufacturing has occupied centre-stage within the discourse on Indian agriculture after Prime Minister Narendra Modi’s current announcement of the ₹11,040-crore National Mission on Edible Oil-Oil Palm (NMEO-OP), to have self-sufficiency in edible oils, notably palm oil.

There are two causes for this announcement. First, the current skyrocketing of edible oil costs has irked the federal government. And, second, the federal government, understandably, doesn’t need to spend international change value ₹60,000-70,000 crore yearly for importing edible oils.

Under this mission, the federal government has proposed to cowl a further 6.5 lakh hectares for oil palm until 2025-26 and, thereby, attain the goal of 10 lakh hectares. Will this mission assist deal with the nation’s edible oil woes? Are there other ways for NMEO-OP to extend the manufacturing of oilseeds swiftly?

One of the most important failures of the Green Revolution is oilseed manufacturing. Although the entire space beneath oilseeds has elevated from 1964-65, it has been nearly stagnated put up 1990-91.

The common space beneath oilseeds was 25.09 million hectares (mha) in 1990-93, and it’s nearly the identical (25.45 mha) now in 2017-20. In truth, among the many main oilseed crops, soyabean is the one one which witnessed a pointy enhance in its space, from 3.18 mha to 11.18 mha, because of the contribution of Madhya Pradesh.

An vital conventional oilseed crop is groundnut, which accounted for nearly 50 per cent of India’s complete oilseed space through the mid-Sixties, but it surely registered an enormous discount, by about 4 mha, between 1990-93 and 2017-20. Rapeseed and mustard are the opposite vital crops which noticed an enormous progress in space and manufacturing throughout Eighties and Nineties, however haven’t seen any enhance in space over the past 20 years; hovering at 6-7 mha. Sunflower was cultivated in near 2 mha throughout 1990-93, which fell to simply 0.26 mha in 2017-20. If not for soyabean, India might have registered a pointy discount in its complete space beneath oilseeds crop by now.

Unlike paddy and wheat, the place productiveness progress helped to reinforce their manufacturing considerably over time, most oilseed crops didn’t expertise such productiveness progress. The Technology Mission on Oilseeds launched in 1986 additionally didn’t assist enhance the realm in a sustained method.

Therefore, the discount in oilseeds space has made an affect on their manufacturing. For occasion, the entire oilseed manufacturing has elevated solely marginally from 32.48 million tonnes in 2010-11 to 33.42 mt in 2019-20.

Reasons for debacle

The introduction of the Green Revolution has altered the cropping sample considerably, permitting the farmers to allocate extra space for worthwhile crops. Between 1964-65 and 2019-20, the realm beneath coarse cereals (now it’s renamed as nutri-cereals) declined from 44.35 mha to 24.02 mha. Coarse cereals are predominantly cultivated beneath rainfed situation, which can also be extremely appropriate for cultivating oilseed crops.

Given this, it was anticipated that the foremost portion of this space would come to oilseeds. But this has not occurred. Why are the coarse cereal farmers not prepared to take up oilseed crops? There are two primary causes for this. First, enticing minimal assist costs (MSPs) weren’t introduced for these crops till Nineties. Second, the procurement of oilseed crops by state businesses was minimal.

To encourage the cultivation of oilseed crops, the federal government rightly began rising the MSPs for nearly all the foremost oilseed crops from 1990-91 onwards. Between 1990-91 and 2020-21, MSPs for oilseed crops have been elevated 8- 10 instances. The per quintal MSP for groundnut elevated from ₹580 to ₹5,275, for sunflower from ₹600 to ₹5,885, for soyabean from ₹350 to ₹3,880 and for rapeseed and mustard from ₹600 to ₹4,650.

Impressive costs have been additionally introduced for gingelly, safflower and milling copra. This large enhance in MSP was not introduced even for paddy and wheat. Surprisingly, even after the large enhance of MSPs, no massive enchancment has taken place within the complete space of oilseeds.

Again this occurred on account of worth and procurement related-reasons. Although larger MSPs are introduced for oilseeds, farmers weren’t in a position to avail themselves of the costs most often because the market costs have been ruling under the MSP in most oilseed crops.

The worth coverage report of the Commission for Agricultural Costs and Prices (CACP) for 2020-21 underlines that the variety of days market costs for groundnut ruling under MSP have been fairly excessive in Gujarat (93.7 per cent), Karnataka (88), Rajasthan (89.1) and Andhra Pradesh (79.5) throughout October 2019 to December 2020. The identical state of affairs was reported for all main oilseed crops over time.

Poor procurement of oilseeds by state businesses is the principle cause for MSP ruling under the market costs. It implies that the farmers are compelled to promote their oilseeds crops within the personal market under MSPs.

No doubt that the NMEO-OP will assist enhance the manufacturing of palm oil sooner or later. But, do we have to spend this a lot cash to advertise a crop that’s not native to us? Moreover, because the gestation interval of oil palm crop is lengthy, will this mission appeal to small and marginal farmers?

Our conventional oilseed crops are wealthy when it comes to nutrient content material. Procurement and remunerative costs are the dual issues that oilseed farmers are dealing with for a few years now. Therefore, preparations are wanted to acquire at the very least 20-30 per cent of complete oilseed manufacturing at MSP to have a win-win state of affairs for each farmers and the federal government.

The author is former full-time Member (Official), CACP. Views are private

#Note-Author Name – A Narayanamoorthy

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