07/10/2024 (Policy Circle) - Edible oils mission: The government has taken a significant step to reduce the country’s dependence on imported edible oils. The Union Cabinet recently rationalised 18 centrally sponsored schemes of the agriculture ministry, with a total allocation of Rs 101,321 crore, into two key programmes. Among these is a National Mission on Oilseeds with an outlay of Rs 10,103 crore.

The two new flagship schemes, Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY), will provide states with greater flexibility in allocating funds according to their needs and help avoid duplication. Of the total funds, the Central share is Rs 69,088.98 crore, while the state share is Rs 32,232.63 crore. PM-RKVY has been allocated Rs 57,074.72 crore and will focus on promoting sustainable agriculture. Krishonnati Yojana, with an allocation of Rs 44,246.89 crore, seeks to strengthen food security and agricultural self-sufficiency. Both schemes will be implemented by state governments.

National edible oils mission

The centrepiece of the government’s agricultural reforms is the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), which will run from 2024-25 to 2030-31. The primary goal of this mission is to significantly boost India’s oilseed production. Currently, India produces 39 million tonnes of oilseeds (2022-23), but the government plans to increase this to 69.7 million tonnes under the scheme. It also aims to improve per-hectare yields from 1,353 kg to 2,112 kg and raise domestic edible oil production from 12.7 million tonnes to 20.2 million tonnes by 2030-31.

The mission seeks to expand oilseed cultivation by bringing an additional four million hectares under production. This will be accomplished through a focus on utilising rice and potato fallow lands, promoting intercropping, and diversifying crop choices. Currently, oilseeds are grown on approximately 29 million hectares of land annually.

Together, the oilseeds mission and the Mission on Oil Palm are critical to achieving self-reliance in edible oil. Presently, India imports around 57% of its edible oil needs, but the schemes aim to reduce this to around 28% over the next seven years. These efforts will not only contribute to India’s economic self-sufficiency but also help stabilise food prices and reduce the country’s vulnerability to global market fluctuations.

Since India liberalised its economy in the 1990s, edible oil imports have surged. Industry experts note that, in the last two decades, imports have risen by over 160% in volume terms, and in value, they have jumped from Rs 7,000 crore to almost Rs 117,000 crore in 2020-21. In 2022-23 (November to October), India imported a record 16.46 million tonnes of edible oils, valued at almost Rs 140,000 crore. In 2024, vegetable oil imports are expected to remain around 16-16.5 million tonnes, similar to the previous marketing season.

To curb imports, the focus will be on boosting the production of key crops such as mustard, groundnut, soybean, sunflower, and sesame. The government also plans to increase oil extraction from secondary sources like cottonseed, rice bran, and tree-borne oils.

The ambitious targets of the oilseeds mission will be achieved through various strategies, including promoting high-yielding, oil-rich seed varieties, expanding cultivation in rice fallow areas, and encouraging intercropping. Additionally, the government will support the development of high-quality seeds using cutting-edge global technologies such as genome editing.

These agricultural reforms come at a time when food security and crop resilience are increasingly threatened by climate change and extreme weather events. The government emphasises that these schemes are designed to address emerging agricultural challenges, such as nutrition security, sustainability, and climate resilience. By focusing on these areas, the reforms aim to raise farmers’ incomes and improve their quality of life. Farmers’ incomes, historically slow-growing and vulnerable to climate change, are a particular focus of these initiatives.

If effectively implemented, India could set an example for other nations on how to adapt agriculture to changing global conditions and mitigate the effects of climate change on the sector.

As India pursues agricultural reforms, it is essential for the government and policymakers to ensure that these initiatives are not solely focused on increasing production and exports, but also on improving the lives of millions of farmers who are the backbone of rural India. The agricultural sector faces numerous challenges, and future efforts must continue to address and resolve these pressing issues.

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