Prepare IAS Coaching
Title : DETAILS OF THE VEGETABLE OIL IMPORTS IN INDIA (Prelims Specific Topic )
Date : Dec 15, 2021
- 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