Import Dependence

Context: India must attain self-sufficiency in edible oils.

About Oilseeds Technology Mission

• The Oilseeds Technology Mission was appointed by the then prime minister, Rajiv Gandhi, in 1987.
• It sought remunerative prices to serve as an incentive for farmers to raise oilseeds output by investing in yield-enhancing technology.
• Market prices were allowed to fluctuate freely within a well-judged range where they remained lucrative for the growers but without going out of the consumer’s reach.
• This strategy made India nearly self-sufficient in cooking oils in just three years by 1990.
• However, its gains could not be sustained because of the general neglect of agriculture in the initial phase of the post-economic reforms era.

Issues with edible oil production and usage in India

• Import dependence: which has surged to 70%; Annual vegetable oil purchases now average 14-15 million tonnes, making them the third-biggest item of imports, next to crude oil and gold.
  • These imports could swell further to 20 million tonnes by 2030, resulting in a pre- carious ship-to-mouth existence for the cooking material.
• Rising domestic demand: Edible oils demand has been growing annually at around 5% since 2000.
• Skewed import distribution: The matter of particular concern is that the bulk of the imports comprise palm oil sourced just from two countries — Indonesia and Malaysia.
  • Any disruption in supplies from there, for whatever reasons, can prove disastrous.
• Insufficiency of utilising past measures like Oilseeds Technology Mission: This kind of strategy won’t work today since the prices of edible oils are already too high and, yet, these crops can’t compete with the staple cereals propped up by the government through liberal hikes in minimum support prices.

Way Forward:

• Oilseed crops now need a profitability edge, acquired through higher production at reduced costs.
• The mantra to do so is to provide some key inputs either free or at subsidised rates and ensure effective marketing support.