Rise in edible oil import starts affecting farmers
Farmers are getting low return for their produce following sharp increase in edible oil import. Presently, farmers get a mere Rs. 1100 for a quintal of Soybean produce - which is very low on any account.
Under WTO regulations, customs duty of crude soybean oil is 45 per cent compared to 85 percent for crude palm oil. As a result, import of soybean oil has increased, leading to misery of farmers.
One possible way out may be increase in yield for soybean crop. India has one of the lowest soybean yield in the world of less than 1 Mt per hectare, compared to global average of 2.5 MT per hectare.
Soybean Processors Association of India (SOPA) has set a target of 1.5 tonnes per hectare of soybean productivity in next two to three years through various measures. SOPA has asked the Central Govt to grant it seed subsidy just as it grants the same to other private bodies. It should be noted that there are farmers in the country who are producing two tonnes per hectare by adopting better irrigation facilities, good seeds and seed replacement - so there is no reason why the same can not be replicated over the country.
Representatives from the oil industry would be meeting the Secretary for Agriculture at Delhi on November 22, to take up the issues of productivity and irrigation.
Nov 20' 2005
