19/11/2019 - Agriculture | Mainstorming

IAS Parliament 5 years

KEY POINTS

· Unrestricted imports of edible oil finished or semi-finished product have hurt domestic producers of oilseeds, the growers.

· Government efforts to raise the minimum support price for oilseeds and effect changes from time to time in customs duty on imported oils have not had the desired impact at all.

· At the same time, tinkering with customs duty from time to time has failed to provide any relief to domestic producers but has merely enriched speculative interests that often bet on changes in rates of duty.

· Crop rotation, improved agronomy, technology infusion and robust procurement have to be a critical part of the strategy.

· As tariffs have failed to perform, imports have to be curtailed to, say, 12-13 million tonnes.

· Further, the imports have to be closely monitored by mandating a system of contract registration and tracking physical arrivals.

· These steps will shake the oilseeds sector, especially the import trade, from out of its comfort zone.

· Restricting import volumes will in the short run push domestic oilseed prices higher and provide the much-needed boost to growers with multiple benefits.

· It will result in area expansion for which grain mono-cropping States such as Punjab and Haryana can be targeted.

· Higher returns will mean farmers will be encouraged to spend more on inputs and practice improved agronomy, Infusion of multiple technologies — infotech, biotech, satellite tech, drone, and so on — will boost crop prospects.

· The Agriculture Ministry will of course have to come up with a national policy for boosting domestic production, not only of cultivated oilseeds but also exploiting the potential of non-conventional sources such as rice bran as well as tree-borne oilseeds.