While defining yellow revolution, explain the problems and strategies for edible oils development in India. (HPAS Mains Question Paper 2022 – GS 1, Q.20)
The Yellow Revolution was a movement that began in 1986-87 to boost the production of edible oil, particularly mustard and sesame seeds, to attain self-sufficiency. In India, Sam Pitroda is regarded as the father of the Yellow Revolution. Groundnut, mustard, soybean, safflower, sesame, sunflower, niger, linseed, and castor are the nine oilseeds targeted by Yellow Revolution.
In 1986, India created the Oil Technical Mission to ensure the success of the yellow revolution. The Yellow Revolution saw the introduction of hybrid mustard and sesame seeds, which dramatically expanded edible oil output owing to the adoption of better oil production technologies.
With flying sunflowers in Punjab fields, the revolution heralded the start of a new age, opening up numerous possibilities and helping to bridge the country’s socioeconomic divide. Before the process began, India’s oil output was 12 million tonnes, more than quadrupled in 10 years to over 24 million tonnes.
With the adoption of hybrid seed, several additional steps were implemented, such as increasing agricultural area to around 26 million hectares and using current technology inputs.
Characteristics of the Yellow Revolution:
- Farmers were given incentives as part of the Yellow Revolution, as well as processing facilities such as irrigation, fertilizers, insecticides, etc., transportation, a minimum support price, warehousing, and so on.
- Several organizations, such as the National Dairy Board, were tasked with encouraging oilseed production during the revolution. The NDB is in charge of increasing groundnut oil output in Gujarat. Similarly, the National Oilseeds and Vegetable Oils Development Board was to increase the production of oilseeds in non-traditional locations.
- The Oilseeds Production Push was created to raise awareness of the four key oilseeds: mustard, peanut, soybean, and sunflower. In addition, around 3000 oilseed societies with 13 lakh farmers and 25 hectares of cultivable land were founded in various states nationwide.
- Despite achieving self-sufficiency in oil production during the following 10 years, India’s supply does not equal its demand. To satisfy demand, India began importing oilseeds from other nations. In 2007, India imported over 5 million tonnes from various countries, including Malaysia, Argentina, and Brazil.
Problems in edible oil development in India:
1. Import dependency: India relies heavily on imports to meet its domestic demand for edible oil. According to the Solvent Extractors’ Association of India, the country imported approximately 15 million tonnes of edible oil in the fiscal year 2019-20, accounting for nearly 70% of its total requirement. Because it relies on imports, the country is vulnerable to global price fluctuations and supply disruptions.
2. Oilseed productivity in India is low compared to other major oilseed-producing countries. The Ministry of Agriculture and Farmers Welfare reports that the average yield of oilseeds in India is around 1 tonne per hectare, significantly lower than the global average of 1.8 tonnes per hectare. Several factors contribute to this low productivity, including low-quality seeds, poor farming practices, and limited access to modern technology.
3. Quality issues: With a high percentage of adulteration and contamination, the quality of edible oil in India is a significant concern. According to an Indian Council of Medical Research study, over half of the edible oil samples collected from various parts of the country were adulterated with cheaper or non-edible substances such as mineral oil. Customers face a severe health risk as a result of this.
4. Price volatility: Farmers in India face price volatility for their oilseed crops, resulting in income uncertainty and financial stress. The Government has implemented minimum support prices (MSP) for some crops, but these are frequently ineffective in providing farmers with adequate price support. For example, the Government announced an MSP of Rs. 3,880 per quintal for soybeans in the 2019-20 crop year, which was lower than the cost of production.
5. Land use conflicts: In India, edible oil production frequently clashes with other land uses such as forest conservation and biodiversity protection. The expansion of palm oil plantations in India’s northeastern states, for example, has resulted in deforestation and habitat loss for endangered species such as the Asian elephant and the Hoolock gibbon.
Strategies to increase India’s Edible Oil Production:
1. Improving productivity: Improving oilseed productivity is an essential strategy for reducing reliance on imports and increasing domestic production. Several initiatives have been launched by the Government to promote the use of high-yielding varieties of oilseeds, better farming practices, and improved technology. The National Food Security Mission – Oilseeds and Oil Palm (NFSM-OOP) programme, for example, aims to increase oilseed production by 3 million tonnes and oil palm production by 1 million tonnes by 2022. According to the Ministry of Agriculture and Farmers Welfare, the production of oilseeds in India has increased from around 26 million tonnes in 2014-15 to 33.8 million tonnes in 2019-20 due to these initiatives.
2. Improving quality: It is critical to ensure the quality of edible oil to protect consumers’ health and build trust in the industry. The Government has taken several steps to improve the quality of edible oil, including establishing the Food Safety and Standards Authority of India (FSSAI) and instituting mandatory quality standards for edible oil. For example, the FSSAI has introduced a new regulation requiring edible oil fortified with vitamins A and D, which will help address the Indian population’s vitamin deficiency.
3. Promoting price support: Ensuring remunerative prices for farmers is critical to promoting oilseed production and improving farmers’ livelihoods. To provide farmers with price support, the Government has implemented minimum support prices (MSP) for certain crops, including oilseeds. For example, for the 2020-21 crop year, the Government has increased the MSP for soybeans to Rs. 3,950 per quintal, expected to benefit approximately 80 lakh farmers.
4. Diversifying the crop base: It is critical to diversify the crop base to include a variety of oilseeds to ensure a consistent supply of edible oil and reduce reliance on a single crop. Several initiatives have been launched by the Government to promote the cultivation of non-traditional oilseeds such as mustard, sunflower, and sesame. For example, the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme provides farmers insurance coverage for non-traditional crops such as oilseeds to encourage their cultivation.
5. Encouraging sustainable practices: Promoting sustainable practices in edible oil production is critical to ensuring the sector’s long-term viability and environmental protection. The Government has launched several initiatives to promote sustainable practices, including the National Mission on Oilseeds and Oil Palm (NMOOP) and the Paramparagat Krishi Vikas Yojana (PKVY), both promoting organic farming practices. Furthermore, some private sector actors have adopted sustainable practices, such as sourcing palm oil from certified sustainable sources.
National Mission on Edible Oils – Oil Palm (NMEO-OP):
- The National Mission on Edible Oils – Oil Palm (NMEO-OP) will be a new Centrally Sponsored Scheme focusing on the North Eastern region and the Andaman and Nicobar Islands. Because the country relies on imported edible oils, it is critical to increase domestic production of edible oils, which includes increasing the area and productivity of oil palm.
- A financial outlay of Rs.11,040 crore has been made for the scheme, with the Government of India contributing Rs.8,844 crore and the State contributing Rs.2,196 crore, which includes viability gap funding.
- It is proposed in this scheme to cover an additional 6.5 lakh hectares (ha.) for oil palm until the year 2025-26, bringing the total to 10 lakh hectares. Crude Palm Oil (CPO) production is expected to reach 11.20 lakh tonnes by 2025-26 and 28 lakh by 2029-30.
- The scheme will significantly benefit oil palm farmers by increasing capital investment, creating jobs, reducing import dependence, and increasing farmers’ income.
- There are two major focus areas of the scheme. The oil palm farmers produce Fresh Fruit Bunches (FFBs) from which oil is extracted by the industry. Presently, the prices of these FFBs are linked to international CPO price fluctuations. For the first time, the Government of India will give a price assurance to the oil palm farmers for the FFBs. This will be known as the Viability Price (VP). This will protect the farmers from the fluctuations of international CPO prices and protect them from volatility. This VP shall be the annual average CPO price of the last 5 years adjusted with the wholesale price index to be multiplied by 14.3 %. This will be fixed yearly for the oil palm year from 1st November 1st November to 31st October 31st October. This assurance will inculcate confidence in the Indian oil palm farmers to go for the increased area and, thereby, more palm oil production. A Formula price (FP) will also be fixed, which will be 14.3% of CPO and will be set every month. The viability gap funding will be the VP-FP, and if the need arises, it will be paid directly to the farmer’s accounts in the form of DBT.
- The assurance to the farmers will be in the form of viability gap funding, and the industry will be mandated to pay 14.3% of the CPO price, which will eventually go up to 15.3%. There is a sunset clause for the scheme, which is on 1st November 1st November 2037. To give impetus to the North-East and Andaman, the Government will additionally bear a cost of 2% of the CPO price to ensure that the farmers are paid at par with the rest of India. The states that adopt the mechanism proposed by the Government of India would benefit from the viability gap payment offered in the scheme. For this, they will enter into MoUs with the Central Government.
- The second primary focus of the scheme is to increase the assistance of inputs/interventions substantially. A substantial increase has been made for planting material for oil palm, and this has increased from Rs 12,000 per ha to Rs.29000. Further significant rise has been driven for maintenance and intercropping interventions. Special assistance @ Rs 250 per plant is being given to replant old gardens to rejuvenate ancient gardens.
