Favorable factors will increase the production of various crops but will reduce the value of yield for farmers

- Demand for edible oil has been rising since 2000 but no concrete plans have been made to increase oilseed production.

Given the good performance of the agricultural sector in the last few years and the forecast of the Meteorological Department, the arrival of timely rains and good rains have led to a very ambitious target of yield for the coming agricultural year. As per the target, a new high is set in the production of most crops, but this may reduce the value of the yield for the farmers. However, there are exceptions to the crop of pulses and oilseeds. Last year the production of pulses was less than required, but for the first time this year we are likely to become self-sufficient in pulses production. This can lead to a reduction in price. But prices of oilseeds and edible oils may remain high due to supply disruptions. Surprisingly, after an unprecedented rise in pulses prices after two consecutive years of drought, the initiative taken by the government to increase pulses production in 2016 has continued but has not done so in the oilseeds sector. More important is to increase domestic production and reduce import dependence in the oilseeds and edible oil sector, which has reached 40 per cent. The country now imports an average of 1.5 to 12 million tonnes of edible oil every year and is the third largest importer after crude oil and gold.

If this situation continues, these imports could reach 50 million tonnes by 2020. In countries like India, where demand for edible oil has been growing at an annual rate of 3% since 2000, such a situation is not appropriate. Of particular concern is the fact that most palm oil is imported from Indonesia and Malaysia. If for some reason the supply from this country is interrupted then a big problem can arise.

The good thing is that it is possible to bridge the gap in the supply of edible oil. This is not difficult to do, especially after success with pulses. The fact is that this achievement has been achieved in the past under the direction of the Oilseed Technology Mission established by the then Prime Minister Rajiv Gandhi in the 19th century.

At that time attractive prices of produce were used to encourage farmers to adopt necessary techniques to increase the production of oilseeds. Market prices were allowed to move freely above and below a certain range so that they remain attractive to producers and not out of reach of consumers. With this policy, India became almost self-sufficient in edible oil in just three years till 190 AD. However, its benefits did not last as the agricultural sector began to be neglected in the early stages after the economic reforms.

Edible oil prices are already high and the crop cannot compete with the main grain, which has moderate support from the government in the form of a minimum support price. Now the oilseed crop has to be made profitable. For this, high production has to be achieved at low production.

This will only happen when some large raw materials are provided for free or at a reduced rate and effective marketing support is provided. This is being done in the case of pulses and good results have been achieved. This needs to be repeated in the case of oilseeds. Only if this kind of process is carried out will the import of edible oil come down and its price will remain low, as well as inflation will be kept under control.