India’s Oilseeds Economy

Sixty years after independence in 1947, India has made satisfactory progress in raising the production of foodgrains, fruits, vegetables, sugar and other plantation crops. However, shortfalls in the production of oilseeds and pulses are concerns for the planners for a long time. The Technology Mission on Oilseeds (1986) achieved some initial success but the continued expansion in population caused demand for edible oils to rise which the domestic output is unable to meet. Edible oil is an essential commodity, more so when a large majority of Indians are vegetarians and animal fats cannot be a substitute. Raising domestic production of oilseeds has the following serious limitations: (a) lack of any genetic advance in technology in evolving high productivity seeds, (b) compulsion of raising oilseeds on unirrigated soils, (c) low productivity per hectare which can never match rice/wheat productivity levels even if grown on irrigated soil and (d) high risk in losing production due to extreme sensitivity of oilseed crops to adverse weather conditions. Given the current low productivity levels and the limitations to raising productivity levels, the country’s dependence on imports to meet almost half of the demand for edible oils is unavoidable. Doubling of international price in 2002 caused little or no reduction in Indian imports, indicating inelasticity of demand for the product. High import duties too had little effect on imported volumes. The present study is the outcome of a research project financed by the University Grants Commission (UGC), New Delhi. It unveils many burning issues related to the oilseeds sector. Trends in area, production and yield are thoroughly discussed. The secondary and first hand information compiled in this book will be useful for further research and analysis. It will open new channels of intellectual interaction with regard to the status of oilseeds economy of India.