India’s Oilseed Production and GMO Adoption

November 23, 2024

The Solvent Extractors’ Association of India (SEA) advocates for genetically modified (GMO) crops to boost oilseed production. President Sanjeev Asthana brought into light the potential increase in production from 35 million tonnes to 45-50 million tonnes by 2029-30. This would enhance vegetable oil availability by 5-6 million tonnes, reaching 15-17 million tonnes. However, demand for edible oil is projected to rise to 28-32 million tonnes due to the popularity of convenience foods.

Government Initiatives

The Government of India has launched the National Oilseeds Mission and the Palm Oil Mission. These initiatives aim to support oilseed production and meet growing demand. The focus is on enhancing self-sufficiency in edible oil.

Export Support for Rapeseed Meal

Asthana called for increased support for rapeseed meal exports. In 2023-24, India exported 22 lakh tonnes, benefiting farmers. However, a 25% decline in exports in 2024 was noted due to uncompetitive pricing. SEA urges a 15% export incentive to improve competitiveness.

Soyabean Procurement Challenges

The government has raised moisture limits for soyabean procurement from 12% to 15% to assist farmers. Despite this, soyabean prices remain below the minimum support price (MSP) of ₹4,890 per quintal, trading around ₹4,200. Full-scale procurement at MSP is necessary in key states.

Domestic demand for soyabean meal has declined due to the use of DDGS in feed. Low international prices have further pressured the market. The ban on de-oiled rice bran exports has also affected prices, leading to a drop from ₹17,000 to ₹10,000 a tonne.

Futures Trading Suspension

The suspension of futures trading in mustard seeds, soyabean, and crude palm oil since 2021 has disrupted price discovery. SEA requests the government to lift this suspension, as it is vital for farmers and the industry.

The domestic oleochemical industry faces challenges from imports of soap noodles from South-East Asia. SEA proposes either restricting these imports or imposing a 25% duty to protect local manufacturers.

Important Facts for Exams:
SEA – The Solvent Extractors’ Association of India advocates for the adoption of GMO crops. This could increase oilseed production, enhancing India’s vegetable oil availability.
MSP – Minimum Support Price is a government-set price to protect farmers. Soybean prices are currently below MSP, indicating market challenges and the need for full-scale procurement.
Oleochemical Industry – This industry produces chemicals from fats and oils. It faces challenges from low-duty imports of soap noodles, prompting calls for protective measures from SEA.

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