Centre urged to better oilseed output

With the country's increasing dependence on import of edible oil, Solvent Extractors' Association of India (SEA) has appealed to the Centre to focus on increasing the productivity in the oilseeds sector.

"Oilseeds production is stagnant at around 26 million tonne per annum and our dependence on import of edible oil is over 40 per cent of the domestic consumption. Increasing production will energise the entire industry and the agricultural economy, said A R Sharma, president, SEA.

The association has suggested to maintain the price of vegetable oils through appropriate duty structure and focus on increasing productivity rather than expanding the area under oilseeds cultivation.

It has also suggested a larger allocation of funds for raising farm productivity for the development of high- yielding variety of seeds, better post-harvest technology and irrigation facilities along with encouragement to private seed companies to produce better seed varieties.

"If we focus on increasing productivity by just 100 kg per hectare every year for the next five years, we will be able to meet the growing demand and check the rising import of vegetable oils," Sharma added. At present, the productivity is at a level of 900 kg per hectare.

Last year, the country produced 277 lakh tonne of oilseeds, which amounted to 80 lakh tonne of edible oil. Despite this, 50 lakh tonne of edible oil was imported to meet the domestic requirement.

The pre-Budget 2007-08 memorandum of the association has stressed on increasing the availability of edible oil from domestic resources by encouraging diversification and exploitation of non-traditional domestic sources.

According to SEA, the seasonal rainfall for 2006 remained satisfactory. Although, actual rainfall turned out to be much higher, the uneven distribution of rains contributed to the decline in area under kharif crops by 1.7 per cent.

It added that kharif acreage under cereals and oilseeds declined and acreage under pulses stagnated.