30-August-2024-Special-Article

PATHWAYS AND STRATEGIES FOR ACCELERATING GROWTH IN EDIBLE OILS TOWARDS GOAL OF ATMANIRBHARTA

The NITI Aayog’s recent report titled “Pathways and Strategies for Accelerating Growth in Edible Oils towards Goal of Atmanirbharta” provides a comprehensive analysis of India’s edible oil sector.

It outlines current challenges, future potential, and strategies to achieve self-sufficiency.

This report is crucial as it addresses the growing demand for edible oils in India and aims to reduce the country’s dependency on imports.

Key Highlights of the Report

Current Status of Oilseed Production

• Major Oilseeds and Their Share: India’s oilseed production includes nine key crops: groundnut, rapeseed-mustard, soybean, sunflower, sesame, safflower, niger seed, castor, and linseed. These cover 14.3% of the total cropped area and contribute about 12-13% to dietary energy and 8% to agricultural exports.
• Leading Crops: Soybean is the dominant crop, accounting for 34% of the total oilseed production. Following this, rapeseed-mustard accounts for 31%, and groundnut makes up 27% of the total oilseed production.
• Regional Distribution: The leading oilseed-producing states are Rajasthan and Madhya Pradesh, each contributing approximately 21.42% of the national production. Gujarat and Maharashtra also play significant roles, contributing 17.24% and 15.83%, respectively.

Rising Consumption and Import Dependence

• Increased Per Capita Consumption: Over the past decade, per capita consumption of edible oil has risen to 19.7 kg per year.
• Import Trends: Domestic production only satisfies 40-45% of the demand, leading to a significant increase in imports. Imports surged from 1.47 million tonnes (MT) in 1986-87 to 16.5 MT in 2022-23. Palm oil is the major import, making up 59%, followed by soybean oil (23%) and sunflower oil (16%).

Growth Trends and Projections

• Historical Growth Rates: Between 1980-81 and 2022-23, the oilseed area, production, and yield grew at rates of 0.90%, 2.84%, and 1.91%, respectively. Over the past ten years, the growth rates for production and yield have increased to 2.12% and 1.53%, respectively.
• Future Projections: Production of the nine major oilseeds is projected to increase to 43 MT by 2030 and 55 MT by 2047, up from 37.96 MT in 2021-22, under the Business as Usual (BAU) scenario.

Demand Forecasting Approaches

• Static/Household Approach: Uses population projections and current consumption levels. It predicts a demand-supply gap of 14.1 MT by 2030 and 5.9 MT by 2047.
• Normative Approach: Utilizing the intake levels recommended by ICMR-NIN, this method suggests a possible surplus of 0.13 MT by 2030 and 9.35 MT by 2047.
• Behavioristic Approach: Considers lifestyle and income changes. It forecasts varying demand-supply gaps depending on consumption scenarios:

• Scenario I: Consumption capped at 25.3 kg per capita, resulting in a gap of 22.3 MT by 2030 and 15.2 MT by 2047.
• Scenario II: Higher consumption at 40.3 kg per capita, resulting in a gap of 29.5 MT by 2030 and 40 MT by 2047.

• High-Income Growth Scenario: Anticipates achieving Scenario I by 2025 and Scenario II by 2031.

Strategies for Achieving Self-Sufficiency

Crop Retention and Diversification

• Increasing Production: Retaining and diversifying oilseed crops could enhance production by 20%, adding 7.36 MT, and reducing imports by 2.1 MT.

Horizontal Expansion

• Utilising Rice Fallow Lands: Expanding cultivation into rice fallow lands and wastelands could boost production by 3.12 MT and cut imports by 1.03 MT.

Vertical Expansion

• Improving Yields: Enhancing yields through better farming practices, high-quality seeds, and advanced technologies is essential. The report’s ‘state-wise quadrant approach’ categorizes states into four groups for targeted strategies:

• High Area-High Yield (HA-HY) States: Focus on improving efficiency and adopting best practices.
• High Area-Low Yield (HA-LY) States: Implement measures to increase yields.
• Low Area-High Yield (LA-HY) States: Expand cultivation area.
• Low Area-Low Yield (LA-LY) States: Address both expansion and yield improvement.

Technological and Strategic Interventions

• Seed Utilisation: Optimising seed quality and processing can increase production by 15-20%, potentially up to 45% with improved management. The Seed Replacement Ratio (SRR) varies from 25% for groundnut to 62% for rapeseed-mustard, impacting yields.
• Modernising Mills: Upgrading mills and improving processing infrastructure is crucial. Current mills operate at only 30% of capacity, with many being small-scale and low-tech.

Challenges in the Edible Oil Sector

Rainfed Production Dependence

• Vulnerability to Weather: 76% of oilseed cultivation relies on rainfed irrigation, making it susceptible to unpredictable weather. Irrigation coverage has only marginally increased from 23% to 27% in the past decade.

Demand-Supply Gap

• Heavy Reliance on Imports: With imports fulfilling 60% of India’s edible oil needs in 2022-23, the country remains heavily dependent on foreign sources, affecting domestic farmers’ earnings.

Increased Consumption

• Rising Per Capita Consumption: The rise in per capita consumption to around 19 kg annually exacerbates the demand-supply gap.

Recommendations of the NITI Aayog Report

Enhancing Oilseed Development

• Bundelkhand and Indo-Gangetic Plain: Revitalise Bundelkhand for sesame and introduce other oilseeds in the Indo-Gangetic Plain to boost productivity and profitability.

Wasteland Utilisation for Oil Palm

• Expanding Oil Palm Cultivation: Utilise wastelands for oil palm, potentially increasing production by 24.7 MT. Collaborate with FPOs, FPCs, and SHGs for effective cultivation.

Cluster-Based Seed Villages

• High-Quality Seed Supply: Establish “One Block-One Seed Village” hubs to improve seed quality and enhance SRR and VRR through FPOs.

Promotion of Biofortified Varieties

• Biofortification Integration: Incorporate biofortification into national missions to improve nutrition and reduce anti-nutritional factors in oilseeds.

Modernising Infrastructure

• Solvent Extraction Efficiency: Improve the capacity utilisation of solvent extraction plants from 30% to at least 60% and balance off-season storage costs with fair pricing.

Enhancing Marketing and Quality Standards

• Seed Production Plans: Develop rolling plans for breeder seed production and harmonise seed standards with international regulations.
• Testing Laboratories: Set up testing labs in mandis to standardise quality and avoid subjective pricing.

Conclusion

To achieve self-sufficiency in edible oils, India must focus on enhancing oilseed production through strategic crop management, technological advancements, and effective infrastructure development. By addressing challenges and implementing the recommended strategies, India can reduce import dependency and secure a sustainable future for its edible oil sector.

Mains question:

1. “Assess the strategies proposed in the NITI Aayog report for achieving self-sufficiency in edible oils in India. How do these strategies address current challenges and future demands?” (150 WORDS)