Title : DETAILS OF THE VEGETABLE OIL IMPORTS IN INDIA (Prelims Specific Topic )

Date : Dec 15, 2021

Description :

• What exactly is the problem:

 

• In both volume and value terms, Indian vegetable oil imports have increased dramatically.
• To protect domestic manufacturers, the Union government must take appropriate actions.

 

• In this aspect, how reliant is India on imports:

 

• India imports about 14 million tonnes of vegetable oil.
• This is worth around $11 billion (around Rs. 70,000 crore).
• Imports of vegetable oil are only second to crude and gold in terms of value.
• It is the highest price for any food item.
• India's reliance on imports has increased to more than 70%.

 

• What are the issues at hand:

 

• Farmers - India's oilseed growers are suffering as a result of rising imports.
• The planted acreage has remained constant, while yields have remained abysmally low.
• This is due to the fact that growers have no financial incentive to enhance their agronomic practises.
• The marketability of the crop grown is also low due to the lack of a price support mechanism.
• Market - Over the previous 25 years, liberal policies such as zero or low duty rates and free market activities have contributed to unrestricted imports.
• This has operated against the protection of domestic growers' interests.
• Speculation accounts for about 10-15% of current import volume.
• It frequently denotes the transportation of stock from Indonesia and Malaysia to India.
• In India, huge stocks of up to 2 million tonnes have frequently piled up, hurting the domestic market.

 

• Source à The Hindu à 14/12/21 à Page Number 12

Tags : Indonesia, Malaysia