India’s Rapeseed Output Hits Record High in 2024

The Indian rapeseed industry has seen a significant rise of 7% compared to last year’s output. The yield stands at 12.09 million metric tons in 2024. The significant hike in production is mainly attributed to larger plantation area for the crop. India being the world’s largest vegetable oil importer can see a significant cut down in edible oil imports on account of this development. Almost 70% of the country’s annual edible oil requirement is fulfilled mainly through the import channel. Presently the country is seeing a 5% increase in acreage, accounting to 10 million hectares of rapeseed cultivation area. The increased yields also faced unseasonal rainfall and hailstorms in the months of February – March 2024.

Government Initiatives for Improved Yield

Many centrally sponsored schemes such as ‘National Food Security Mission – Oilseeds and Oil Palm’ have been mainly focussing on improved edible oil production rates. Incentives and subsidies are offered under the scheme for farmers through respective state governments. These schemes help farmers in purchasing good quality seeds, purchasing seed storage bins and equipments for plant protection and finally acquire transfer of technology components.

Rising Demand in Edible Oil sector

With the ever increasing urbanization, population rise and increased per capita income levels, the growing demand for edible oils have become more pertinent. The edible oil industry is set to forecast substantial growth in the coming years. India is also drawing high and active investments in this particular sector.

Self Sufficiency in Edible Oil Production

India can look forward to increase domestic oil production and decrease import dependency to a large extent. The budget of INR 11,040 crore set aside for promoting edible oil seed cultivation in north eastern part of the country in 2021 is proof enough for this. The National Mission on Edible Oils has plans stacked up to increase acreage dedicated to oil palm by 1 million hectares by the year 2026.

India needs to work on a string of schemes and initiatives to help improve the availability of edible oils. The basic duty on crude palm oils could be cut drastically to increase production. Also, agricultural cess rates could be dropped to 5% from exiting 7.5% to promote yields. Basic duty cuts on refined edible oils could further promote the production rate in the country.

Category: Reports & Indexes Current Affairs