Government's exercise to save Rs 950 crore by starting asafoetida cultivation

- Commodity Current: Jayavadan Gandhi

Nowadays, rising prices of agri commodities, especially edible oils and pulses, have become a headache for the government. With the exception of wheat and rice, most of the food items are expected to remain high in the near future due to significant differences in production figures and realities. Edible oils like groundnut oil, mustard oil and soybean oil have risen by Rs 50 to Rs 70 per liter in the last one year. Pulses are also on the rise due to low production of chickpeas and lentils. Traders' associations have demanded duty-free imports from abroad as the existing stock in pulses is not long lasting. According to government estimates, in the year 2020-21, the soybean crop was 13 lakh tonnes and the mustard-rye crop was over 100 lakh tonnes. If production had been as per government estimates, there would have been no scope for a boom. But the real reality of the market is that the price of soybean is Rs. 500 / - which support prices of Rs. About 50% more than 50 / -. Similarly, due to the rise in rye-mustard, its prices have gone up by Rs. 50 / -. The support prices are Rs. 50% more than 50 / -. Prices of palm oil, the world's most imported oil, have also doubled due to global factors, affecting inflation in domestic markets. Pulses have a similar condition. According to government figures, pulses prices have been much higher than government support prices. As a result, the government has tried to build pals in pulses before the water goes free by allowing free import.

The government's mission to become self-sufficient in food, however, has met with some success. An exercise has been undertaken to start production in India of food items which cost more to import. For example, India imports about 1,200 tonnes of raw asafoetida every year. Behind which costs around Rs 50 crore. The Modi government has started cultivation of raw asafoetida in the hilly areas of Himachal Pradesh. Countries like Iran, Afghanistan and Uzbekistan have to import around 150 tonnes of raw asafoetida during the day to meet domestic demand. Asafoetida is very beneficial for the treatment of gas and respiratory problems in the body. Asafoetida is widely consumed in India.

The Government of India has granted trade concessions under the South Asian Free Trade Area (SAFTA) for the purpose of free trade with the neighboring countries as well. But shocking information has come out that neighboring countries like Nepal and Bangladesh are betraying India by abusing free trade and sending soybeans and palm oil to India on zero duty. It is estimated that the misuse of free trade is costing India over Rs 1,500 crore a year. According to reports from oilseeds and oil companies, Nepal and Bangladesh have flagrantly violated the rules of free trade. Not only soybean and palm oil are cultivated in Nepal and Bangladesh. However, both countries buy palm oil from Malaysia and Indonesia and soybeans from Brazil and Argentina, exporting to India at the expense of free trade rules. If an Indian trader imports crude palm oil, he has to pay Rs 2 per liter and if he imports soybean, he has to pay Rs 21 per liter as duty and cess to the government. Goods purchased by traders via Nepal and Bangladesh can be obtained at zero duty. Nepal exported 2.15 lakh tonnes of soybeans and 2,000 tonnes of palm oil to India between July 30 and April 31. India meets domestic needs by importing 70% of its total consumption during the summer. In particular, the cheapest palm oil is imported at a maximum of 20 per cent. Palm oil is widely used in salty and industrial uses, from hotels to restaurants. Palm oil is also widely used for blending into local oils.

Peanut oil is also widely consumed in Gujarat, Maharashtra and Rajasthan. However, the market has been largely bullish this year as demand for Chinese peanut oil has been significant. However, since the start of Chinese buying last week, prices of groundnut oil have been rising again. China has procured about 2.5 million tonnes of groundnut oil this year. However, trade has been stalled for the past few months due to the lockdown. But China's peanut oil market is on fire again. Peanut stocks are also plentiful, but foreign trade is booming.

With the opening of marketyards in the state after the lockdown, the income of farmers has been increasing significantly. In Unjha Market Yard, in areas like Barmel, Bhinmal, Sanchore, Jodhpur of Rajasthan, cumin farmers are getting income of 30 to 40 thousand sacks daily. Farmers have been forced to sell cumin goods to meet their economic needs. In addition to cumin in Unjha yard, income from agricultural products like fennel, sesame, sesame, ajmo has also been increasing.