The Yellow Revolution: Need of the Hour

With Edible Oil imports reaching a whopping 165 lakh mts last year it would come as a surprise to everyone that India was reasonably Self-sufficient in edible oils in the Nineties of the last century. Our import of edible oil was a minuscule 3.0 lakh tons. However, our obsession with Wheat and Rice after the launch of the Green Revolution has resulted in India becoming a surplus in these commodities at the cost of Oilseeds. 

Skewed Thinking lost decades

About two decades back I had an interesting conversation with a very Senior Govt. functionary on the step-motherly treatment meted out to the Oilseed sector. His reply summed up the fundamental reasons for thinking in the policy-making circles of the time. He said the private sector has done such a wonderful job of maintaining the supply chain of edible oils that they feel the need for Oilseed development thrust does not exist. Years of low commodity prices had lulled decision-makers into complacency and this was reflected in deciding priorities.

This skewed thinking resulted in Indian dependence on imports growing to almost 60-65% of our consumption seriously compromising our Edible Oil security. The import bill has now ballooned to almost Rs.1.4 lakh crore and rising year after year. Food Security in our view does not mean only wheat and rice security as you require both pulses and edible oils to complete a meal.

The fallacy of neglecting the Oilseed Sector over the years hit us below the belt when COVID-19 struck. With Indonesia banning Palm oil exports to protect its domestic market, edible oil prices in India went through the roof. The situation became alarming and edible oil prices almost touched Rs 200/ per kg. Oilseed prices rose alarmingly and Soya beans were traded at Rs 10000/per quintal sending alarm bells in decision-making quarters. 

Government Steps

The current regime headed by PM Narendra Modi understood the writing on the wall and swung into action to limit the fallout and ensure the common man is not affected much. The pace of decision-making and doing immediate course correction was exemplary.I have been in the Edible oil and oilseed business for more than four decades but have never seen such a proactive approach by the government functionaries. It may not be out of place to recount some of the actions which provided succour in those harrowing times during Covid and post-Covid. Sometimes one wonders if the normal pace of government decision making had happened we would have been witness to untold human misery.

- The then Food Secretary and his team burnt a lot of midnight oil to ensure the supply chain remained unaffected. Zoom meetings with key industry players were held practically every second day and problems were sorted out at breakneck speed. Honestly speaking it was a novel experience to speak to Secretary, JT. Secretary-level officers regularly as opposed to running from pillar to post to get an appointment. Welcome winds of change.

- Even though dependence on imports is very high Edible oil discharge and clearance at ports used to take 10/15 days resulting in disrupting the supply chain. Prompt action from Govt ensured clearances within two days.

-Edible oil import duties were slashed across the board.

-Edible Oil Manufacturers were requested to lower their prices and our Association -SEA pushed the industry to rise in this need of the hour by lowering prices. The industry responded proactively and promptly.

-Indonesia was dealt with diplomatically and they had to withdraw the ban within a short time and their concerned Minister came running to India to mend fences. The message to the world was clear - DO NOT MESS WITH INDIA.

- Geo-political tensions in the Black Sea area also disrupted Sunflower oil supplies. Proactive action in opening imports from Russia ensured minimal dislocation.

- The Prime Minister even called a Zoom meeting of prominent players to get suggestions to tackle the situation on a long-term basis. This writer was also one of the speakers and gave suggestions which can go a long way in addressing the issue of Atmanirbharta in edible oils/oilseeds.

All these measures had the desired effect and spiraling prices were brought down to manageable levels.

Moving towards Atmanirbharta

Ever since Prime Minister gave the clarion call the buzzword in Policymaking circles is Atmanirbharta. No wonder we see action towards improving Oilseed production in the country.

Massive investment for promoting Palm India was announced with an initial outlay of 11000 crore. The National Mission on Edible Oil and Oil Palm has been put on the fast track. The Finance Minister announced the start of the Oilseed Mission during her Interim Budget speech which reflects the seriousness with which this problem is now being addressed.

Apex Industry Association SEA, launched the Mustard Mission aggressively and with Govt support is seeing a massive jump in Mustand production in our country few years back the production used to hover around 7.0 million tons and now it is touching 12.0 million tons. To say Mustard has been our saviour would not be out of place.

One of the biggest problems facing the Oilseed Sector has been woefully low productivity, ironically over the years NGOs and activists have stymied efforts to introduce GM Oilseeds which may have the potential to increase yields. It is to the credit of this Government that they have given an affidavit in the Supreme Court that opposing GM in oilseeds is tantamount to being anti-national. This decisiveness will go a long way in helping Atmanirbharta's efforts in Oilseeds.

Under our dynamic and action-oriented leadership, we are bound to see strong and effective action at the ground level in the coming years. Time for never-ending debates is long over and concrete action under National Mission on Edible Oil is the need of the hour to have a changing impact on Oilseeds production in our country. If we continue to dither (unlikely under the present regime) we will permanently remain at the mercy of Exporting Countries and our bargaining capacity will be seriously compromised.

(Atul Chaturvedi is Senior Advisor and former President, Solvent Extractors Association of India)