Import policy and oil seed production

The government’s decision to continue with the oilseeds production programme (OPP) with a total outlay of Rs 760 crore during the remaining two years of the 9^th plan (`97-02) is unlikely to encourage farmers to increase acreage under the oilseeds, if the prevailing policy of flooding the country with imported edible oils is any indication.

The area under major oilseed crop will increase to 30m hectares by the end of the 9^th five-year plan as against 26.34m hectares at end if the 8^th plan period.

The government also except the production of oilseeds to touch 30m tonnes at the end of the current plan period as against 24.38m tonnes during the 8^th plan period. The average productivity levels during the same period are excepted to go up to 1,057 kg per hectare from 926 kg and the average oil are availability to nine million tonnes from 7.5m tonnes.

"This appears to be hoping against hope at a time when oilseeds farmers are forced to make distress sales in major producing states even at a time when the demostic oilseeds production is estimated much lower at 19m tonnes against 21.7m tonnes last season," As a result of the liberal policy, edible oil imports have jumped from 1.75m tonnes in `96-97 oil year (November- October ) to 2.08m tonnes in `97-98 , which more than double to as high as 4.40m tonnes last season.

Market Update
(Oil Seeds)