Why has India become increasingly import-dependent for edible oils despite being a major agricultural economy?
Main Body
India imports more than 30% of its edible oil requirements from other countries despite substantial production of oilseeds. Reasons for import dependence: 1) Surging demand for edible oil owing to rising food culture and packaged snacks 2) Weakening of food habits 3) Use of palm oil in food processing where palm oil is not exactly produced in India 4) Distortionary agricultural policy: MSP oriented procurement limited to wheat, rice and limited land given to oil seeds 5) Volatile oil price: MSA averse farmers prefer producing wheat and rice even if returns and MSP are uncertain 6) Lack of nutritional literacy and health consciousness: People prefer oily food Measures taken by Government: - National mission for self-sufficing in oil seeds - Nutritional education - Rationalizing and diversifying procurement - Income support to farmers: KISAN Issues: - Bio-sourced wheat and rice: Even in areas and regions switched for oil seeds - Demand outstrip supply Way forward: 1) Address demand-side factors: Awareness generation and campaigns 2) Legislation requiring disclosure to oil use in packaged product 3) Diversify more area under oil seeds by higher MSP, reliable procurement etc
ISHAN BHATNAGAR
Agriculture and Food Security
Major Crops - Cropping Patterns
Major Crops - Cropping Patterns
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analytical
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