Despite direct impact, edible oil sector is divided on GM mustard approval

Even the opinion of farmers' groups seems divided after AIKS comes out in support

Edible oil players, which will be affected directly by genetically modified (GM) mustard seeds, have mixed views on the recent nod for the “environmental release” granted by the Genetic Engineering Appraisal Committee.

The Bhartiya Kisan Sangh (BKS), affiliated to the Rashtriya Swyamsevak Sangh, and the Swadeshi Jagran Manch (SJM) have opposed the approval while the Left-leaning All India Kisan Sabha (AIKS) has come out in support of it, saying it isn’t opposed to genetic modification per se but wants it to be tested in Indian conditions.

While a section of the industry has welcomed the clearance, another segment has doubts on the efficacy of GM mustard and feels it won’t benefit oil-processing units and small farmers.

They are doubtful whether mustard oil processed from genetically engineered seeds will have the same “pungency” and taste that the conventional variety is known to possess. These are mostly small oilseeds processors and factories that work on a lower scale.

Big mustard oil brands and those that are major players in the organised fields, while being cautious about speaking on record due to the sensitivities involved with the clearance, were of the opinion that a much clearer picture on the benefits and pitfalls will emerge only in the next few years if all studies and tests are successful and the variety starts hitting the farms.

“GM mustard will bring about an increase in oil production but we could see higher production only after two years,” Chandra Shekhar Reddy, vice-president (sales and marketing), Gemini Edibles and Fats India, told Business Standard.

India’s oilseeds industry has a turnover of around Rs 2.75 trillion and employs about a million people, apart from supporting almost 20 million oilseeds growers, who form nearly 13 per cent of the farming community of 150 million.

“We feel that the ‘pungency’ that is associated with pure mustard oil won’t be there in oil produced from GM mustard but only in refined forms. Also, the seeds might not fetch the same price as conventional mustard seeds do for farmers. Plus, there could be problems in labelling. Therefore, it’s our appeal to the government that in the interests of mustard oil factories, processors, and farmers, GM mustard should not be approved,” Babu Lal Data, president of the Mustard Oil Producers Association of India, told Business Standard.

However, the Solvent Extractors Association, which is a prominent body of domestic edible oil players, has opposite views.

B V Mehta, executive director of the association, while welcoming the approval, said the association had been following the matter for 15 years.

“Opposition to new technology will not help. We have been opposing GM with disastrous results. We have all been eating GM food for ages. It must be remembered that GM mustard is vital for raising domestic mustard seed production,” Mehta told Business Standard.

He said that from an industry point of view, this technology was important to improve the capacity utilisation of domestic oilseed crushers, who operate at less than 40 per cent capacity every year due to lack of raw materials while the import bill of edible oils was rising every year.

Htbt Cotton likely to get GEAC nod for ‘environmental release’

Close on the heels of approval for ‘environmental release of GM mustard, the market is agog with talk that the Genetic Engineering Appraisal Committee (GEAC) might grant a similar nod for the long pending Htbt Cotton also called at Bollgard Two RoundUp Ready Flex (BG-2 RRF). The GEAC in one of its meetings is believed to have approved the recommendations of a panel which has recommended a release similar to that GM mustard for htbt cotton as well. The BG-2 RRF had already undergone all biosafety trials in 2012-13 as per the application submitted by its original developer Monsanto. Later, the application was withdrawn and resubmitted by Monsanto’s new owner Bayer sometime back. The approval of Htbt Cotton will bring in long pending demand in the sector which has been reeling under repeated pest attacks due to the absence of newer varieties of Bt cotton after the first one was cleared back in 2002. 

India’s Edible Oil Scenario

• Area under oilseed cultivation --- 28 million hectares
• Average yield/hectare --- 1000-1100 kgs
• Average oilseed production (yearly)--- 28-30 million tons
• Avg per capita edible oil consumption --- 16-16.5 kgs
• Domestic veg oil production (per annum) --- 9.5-10 million tonnes
• Domestic veg Oil consumption (per annum) --- 22-22.5 million tons
• Annual Import of veg oils (per annum) --- 13-13.5 million tonnes
• Total turnover of oilseed industry ---- $13.5 billion

Source: Trade and industry bodies