Why has India become increasingly import-dependent for edible oils despite being a major agricultural economy?
Main Body
India's AGRI GDP accounts for 18%+ of its product yet 40%-50%+ of our edible oils are imported. Why the dependency: (1) Government policy: MSPs on wheat, paddy fertilizer to value focus on their production. (2) Climatic Condition: Favourable more for Sugarcane, Rice, pulses than oil needs. (3) Supply chain: Malaysia, Indonesia have a vertical integration and is inputs beat on price. (4) Quality constraint: Soyabean, sunflowers, palm oil etc are uet of export quality. (5) FPI integration: Less end of value chain and connected with higher end. (6) Mechanization: Only 14%+ of India's agri fields are mechanized leading to loss turn around time.
Abhishek Chauhan
Agriculture and Food Security
Cropping pattern and irrigation
Edible Oils
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analytical
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