24th September 2024 (14 Topics)

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Government Takes Steps to Support Oilseed Farmers in India

Context

In recent weeks, the Indian government has made significant decisions aimed at protecting oilseed farmers.

Key-decisions taken by the Government

Import Duty Increases: The government raised the basic customs duty (BCD) on imported oils:

Crude Oils (like palm, soybean, and sunflower oil): Increased from 0% to 20%.
Refined Oils: Increased from 5% to 32.5%.

After including additional charges, the effective import duty on crude oils is now 5%, while refined oils face a 35.75% duty. This marks the first time since October 2021 that these duties have been reinstated, restoring protection for domestic growers against imports.

Support for Soybean Farmers

Alongside the duty increase, the government has authorized several states—including Maharashtra, Madhya Pradesh, Karnataka, and Telangana—to procure soybeans at a minimum support price (MSP) of ?4,892 per quintal.
This move has helped stabilize prices in wholesale markets, where soybean prices have risen from ?4,200-4,300 to ?4,600-4,700 per quintal in the past month.

Fact box:

Edible oil production

India imports over 70% of its edible oil needs, with more than half of this coming from palm oil, primarily sourced from Indonesia, Malaysia, and Thailand. The insufficiency in edible oil is negatively impacting FOREX.
India is the 4th largest oilseeds producer in the world. It has 20.8% of the total area under cultivation globally, accounting for 10% of global production.
The country produces groundnut, soybean, sunflower, sesamum, niger seed, mustard and safflower oilseeds.
Largest oilseed-producing states in India include Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal.
Important Missions
- Mission Palm Oil: It is a special campaign carried out by the central government with a focus on the Northeast, and inaugurated the first oil mill under this mission.
- National Mission for Edible Oils - Oil Palm (NMEO-OP): Launched in 2021, the mission is committed to escalating oil palm cultivation and elevating Crude Palm Oil production to 11.20 lakh tonnes by 2025-26.
Government Bodies
- Directorate of Oilseeds Development (DOD): DOD was formed in the year 1942 and is responsible for supervising the Oilseed Development Programmes and Oil Palm Development Programmes across the country and in the designated states of Andhra Pradesh, Kerala, Tamil Nadu, and Karnataka.
- Indian Oilseeds and Produce Export Promotion Council (IOPEPC): IOPEPC was formed in 1956. Its primary aim is to promote and protect India’s export trade in commodities like oilseeds, vegetable oil and oilcake.

PYQ

Q1. Consider the following statements: (2018)

The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Solution: (a)

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GS Analyst: Daily Current Affairs

24th September 2024 (14 Topics)

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Government Takes Steps to Support Oilseed Farmers in India

Key-decisions taken by the Government

Import Duty Increases: The government raised the basic customs duty (BCD) on imported oils:

Support for Soybean Farmers

Fact box:

PYQ

Still Have Questions?

GS Analyst: Daily Current Affairs

Government Takes Steps to Support Oilseed Farmers in India

Key-decisions taken by the Government

Import Duty Increases: The government raised the basic customs duty (BCD) on imported oils:

Support for Soybean Farmers

Fact box:

PYQ

Still Have Questions?

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