The Hindu : National : Pawar calls for increasing edible oilseeds production

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Pawar calls for increasing edible oilseeds production

Special Correspondent

Lists steps taken to bring relief to poorer sections

Demand for edible oils may go up to 149 lakh tonnes in 2011-12
“Higher MSP offered for oilseeds to make it profitable for farmers”

NEW DELHI: The Union government has provided relief to the poorer sections by making available edible oils at a subsidy of Rs.15 a kg through the State governments.

The other measures taken include a cut in import duty on crude oil to zero per cent and that on refined oils to 7.5 per cent, ban on export of all major edible oils and authorising States to impose stock limits, Union Agriculture, Consumer Affairs, Food and Distribution Minister Sharad Pawar told the Consultative Committee attached to his Ministry.

He, however, said that in the long run, availability of edible oils at reasonable prices could be ensured only by increasing production of edible oilseeds.

Global prices

Over the last one year, the wholesale price of mustard oil went up by about 38 per cent and that of groundnut oil by 3 per cent in the domestic market. International prices of soyabean oil and palmolein went up by 84 per cent and 47 per cent respectively.

The domestic prices of these oils went up by 45 per cent and 29 per cent respectively during the same period. Therefore, to moderate the prices of edible oils, the increase in the domestic prices was kept low, compared to the international prices.

Mr. Pawar said that despite an increase by 167 per cent in the domestic production of oilseeds from 108 lakh tonnes in 1985-86 to 288.2 lakh tonnes in 2007-08, the domestic supply of edible oils fell short.

This was because the demand surpassed production due to growth in population and improvement in the standards of living.

Projected demand

According to the projections made for the 10th Five Year Plan, the annual consumption of edible oils in the country had increased from 98 lakh tonnes in 2001-02 to 124 lakh tonnes in 2006-07.

The demand is projected to increase from 127 lakh tonnes in 2007-08 to 149 lakh tonnes in 2011-12. The deficit of about 4 million tonnes to 5 million tonnes was being met by imports.

Enhanced incentives

The Minister said enhanced incentives were being provided to farmers through higher Minimum Support Price (MSP) for major oilseeds so as to make their cultivation profitable.

The MSP for groundnut, which was Rs.1,340 a quintal in 2001-02, was raised to Rs.1,550 a quintal in 2007-08. The MSP for mustard, which was Rs.1,300 in 2001-02, was made Rs.1,800 in 2007-08.

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