Despite being the fifth largest oilseed crop producing country in the world, India is also one of the largest importers of vegetable oils. The demand-supply gap in the edible oils has necessitated huge imports accounting for 60 per cent of the country’s requirement. for this, government has recently launched National Edible Oil Mission-Oil Palm (NMEO-OP)
IMPORTANT FACTS
Area under Oilseeds: 27 Mha (14% of agriculture area). It has remained almost stagnant (with slight variation) both in terms of absolute area as well as percentage of area under agriculture.
Production of Oilseeds: 33 MT (2019-20). The overall production has neither consistently increased nor decreased in the last decade. It has been fluctuating and has remained around 30 MT in the last decade.
Demand-Supply Mismatch of Edible Oils: Domestic requirements: 25 MT; Domestic Production: 10 MT from primary sources (Soybean, Groundnut, Sunflower etc.) and Secondary sources (Palm oil, coconut, rice bran, cotton seeds etc.). The remaining 60 per cent of requirement is met through imports.
Of imported edible oils, share of palm oil is about 60% followed by soybean oil and sunflower. India has emerged as the largest importer of vegetable oils in the world followed by China & USA.
Import bill: Rs 75,000 crore (2020-21). In the current year, the import bill could go up to Rs 1 lakh crores.
INITIATIVES TO BOOST OILSEEDS PRODUCTION
- National Food Security Mission (NFSM)-Oilseeds & Oil Palm: Distribution of quality seeds, improved technologies, Distribution of micronutrients etc.
- Increase in the MSP on Oilseeds
- Guaranteed procurement through PM-AASHA
Targeting Rice Fallow Areas (TRFA) for cultivation of Pulses and Oilseeds. Once the Rice is harvested, residual moisture left in the soil is sufficient to grow Pulses and Oilseeds. Introduction of Pulses and Oilseeds in Rice fallows will not only increase production of Pulses and Oilseeds, but it will also lead to doubling farmers income.
DETAILS ABOUT NATIONAL EDIBLE OIL MISSION-OIL PALM (NMEO-OP)
OBJECTIVES
Increase area and Production: Increase area under Palm Oil cultivation from 3 lakh hectares to an additional 6.5 lakh hectares. Production of Crude Palm Oil (CPO) is expected to increase to 11.20 lakh tonnes by 2025-26.
Focus Areas:
- Price assurance to the farmers to protect them from volatility in the prices of Crude Palm oil
- Assistance to the farmers for buying various inputs such as planting material
- Special emphasis on the North-eastern States and Andaman & Nicobar Islands.
Funding: Centrally sponsored scheme- to be financed by both Centre and States.
WAY FORWARD
STRATEGY TO PROMOTE CULTIVATION OF OILSEEDS (Dalwai Panel Recommendations)
- Increasing production through adoption of high yielding varieties of seeds; soil and moisture conservation techniques in rainfed areas; balanced Utilisation of fertilisers; Intercropping of Oilseeds with other crops; Contract farming etc.
- Encourage Cooperatives and FPOs and link them to oil processing Industries.
- Reduce per capita consumption of edible oil and minimize import. Campaign for healthy oil consumption.
- Promotion of Secondary Sources (rice bran, coconut, cotton seed, oil palm and TBOs)
- Enhancing capacity utilization of domestic processing industries
- Promoting consumption of coconut as edible oil.
INCREASING PALM OIL CULTIVATION IN INDIA
Benefits
Aatma-Nirbhar in edible oils: Palm oil accounts for 60% of import of edible oils. 99% of domestic palm oil requirements met through imports.
Higher yield of edible oils: One hectare of palm oil cultivation gives about 4000 kg of oil as against 500kg in case of sunflower.
Lower land requirement as palm oil cultivation gives higher yield of edible oils in comparison to sunflower, groundnut etc.
Low maintenance costs due to low pest and disease resistance.
Increase in income levels of the farmers by providing year-round returns.
Boosts job creation and value addition by giving push to Food processing Industries.
Challenges
Longer gestation period of at least 4-5 years and hence restricts income flow to the farmers during initial years.
Smaller land landholdings: Small holdings of farmers with limited resources.
Fluctuation in prices in the international market.
Erratic monsoon leading to shortage of water.
Competition with other economically viable crops such as rubber, arecanut, sugarcane, banana, coconut etc.
Environmental damage: Diversion of forest land, excessive water consumption, loss of biodiversity etc.
International Experience: IUCN: Oil palm expansion has led to deforestation, degradation of natural habitats in parts of tropical Asia and Central and South America.