Oil seeds

Oil seeds are used for extracting oil. Groundnut, rapeseed, Mustard, soybean and sunflower are the main oilseeds grown in India.

It is a Dryland crop and occupies 14% of the country – with areas including the Malwa plateau, Marathwada, Gujarat, Rajasthan, Telangana and Rayalseema region.

Crop	Conditions	States in India	India’s Position
Groundnut	Largely rainfed Kharif crop of dryland.	Yield high in Tamil Nadu – it is partly irrigated. Low in Andhra Pradesh and Karnataka. 3.6% of total area Gujarat, Tamil Nadu, Andhra, Karnataka and Maharashtra.	17% of the total groundnut in the world
Rapseed and Mustard: Rai Sarson, toria, taramira.	– Sub-tropical areas – Rabi season – N-W and central part.	Rajasthan – 1/3rd Other: UP, Haryana, West Bengal and MP. Their yields have improved to some extent with irrigation. Yields high in Haryana and Rajasthan.	2.5% of cropped area;
Soya Bean	Kharif Season – It is mostly rainfed.	90% of the total output from MP and Maharashtra
Casterseed and Sesamum		4th and 5th most important oilseed.
Sunflower	It can be sown in any season. It thrives on Loamy soil with good irrigation.	Concentrated in Karnataka, Andhra Pradesh and adjoining areas of Maharashtra It’s a minor crop in northern India – but Yield is high due to irrigation. 6th most imp. oilseed	Crude sunflower oil is mainly imported from Ukraine, Russia and Argentina.
Coconut	Tropical Climate	Coastlines of India account for 90% of production: Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Odisha.

Cropping Pattern of Oilseeds in India:

• Area: Mostly Drylands such as Malwa Plateau, Marathwada, Gujarat, Rajasthan, Telangana and Rayalseema region.
• It occupies 14% of the country. The 8-10Mn Tonnes of Production in India is unevenly distributed.

Crop-wise distribution:

The diverse agro-ecological conditions in the country are favourable for growing 9 annual oilseed crops, which include:

• 7 edible oilseeds (groundnut, rapeseed and mustard, soybean, sunflower, sesame, safflower and Niger) and
• 2 non-edible oilseeds (castor and linseed).

Import Dependency:

After crude oil, gold, and diamonds, edible oil is India’s largest import item.

• Indonesia and Malaysia are the major suppliers of RBD palmolein and crude palm oil to India.
• The crude soybean degummed oil is mainly imported from Argentina and Brazil.
• Crude sunflower oil is mainly imported from Ukraine, Russia and Argentina.

Increased International Demand and Price rise in recent times:

In recent times, the inflation in the prices of Oilseeds has forced governments around the world to increase their production. Reasons behind this price rise include:

1. Technical Factors: There is a shifting of edible oils from food baskets to fuel baskets. There has been a thrust on making renewable fuel from soyabean oil in the US, Brazil and other countries.
2. Political Factors: Increased buying by countries China, and Labour issues in Malaysia,
3. Geographical Factors:
   1. Impact of La Niña on palm and soya-producing areas, and
   2. Lower than-expected planting intentions and accounts of below-average temperatures and dry conditions in parts of USA’s main soya growing regions.
4. Economic factors:
   1. Export duties on crude palm oil in Indonesia and Malaysia.
   2. Increased food inflation after COVID-19.

The prices of six edible oils — groundnut oil, mustard oil, vanaspati, soya oil, sunflower oil and palm oil — have risen between 20% and 56% at all-India levels in the last year, data on the Department of Consumer Affairs website show. India imports around 60% of all edible oil of our total demand of around 25Mn Tonnes, which makes 40% of our overall agricultural imports. This makes the prices of oil dependent on global reasons.

Yellow Revolution:

In 1986, when the government launched the Technology Mission on Oilseed, Taking several Initiatives:

• Supply of high-yielding (HYV) oilseed to cultivars,
• Offering of minimum support prices (MSP);
• Fixation of price band;
• Extension services and subsidised inputs;
• Import controls via canalisation; and promotion of oil palm cultivation.

Successes of the Yellow Revolution:

• Productivity jumped by 20% from 670 kg per hectare in the eighties to 835 kg per hectare in the 90s.
• Increased acreage: the growth rate of area, production and yield of oilseeds increased significantly.
• Import substitution: The proportion of imported edible oils in total edible oil availability declined from 26.72% in 1985 to 2.17% in 1993, thereby making India almost self-sufficient.

However, after the 1990s the progress slowed:

Factors Behind the Poor Performance of the Yellow Revolution:

• Slow Progress: Today, the major problem in oil seed production is low productivity.
• International Pressure: In response to economic liberalisation and WTO commitments since the early 1990s, India gradually liberalised edible oil imports.
• Less Procurement by FCI: It is a crop grown for commercial purposes only in areas where the procurement of wheat and rice is lower.
• Geographical constraints: 85% of the area under oilseeds is rainfed, often cultivated with low input and poor; They grow what is best suited to the land.
• Cheap imports: Keen the major agricultural states out of Oil seed production.
• Supply Chain constraints: The link between the food processing units and oil mills is weak due to weak logistic support.
• Poor irrigation support: mostly dry-land under Oil Seeds.
• MSP system for oilseeds: became ineffective due to inadequacy of MSP in relation to the cost of production and lower procurement by government agencies.
• The area under production is low: The area under oil seeds in India remains between 22 to 29 million hectares while production of the major oil seeds remains between 20 to 33 million tonnes.

Way Forward:

1. Alternative edible oil: For example, India has tremendous potential to produce rice bran oil (RBO) and palm oil cultivation.
2. Increasing the import tariffs: Such a strategy might increase domestic production of oilseeds as happened during the yellow revolution.
3. Allowing Price to rise freely: Ex: Under the Technology Mission on Oilseeds launched in 1986, the strategy of fixing a price band and allowing the domestic prices of oilseeds and edible oils to fluctuate freely within the band has worked successfully to incentivise oilseeds production.
4. Incentives to private sector participation in processing and value addition in oilseed crops. Also, constraints for low capacity utilization should be addressed.
5. Introduction of market-friendly reforms: such as contract farming and PPP in production and processing.
6. Appropriate policy support to remove the bottlenecks faced by the oil seeds sector.
7. Promoting Alternate uses: such as use in bio-fuels, replacement for petroleum-based machine oils etc.

National Mission on Oil Seeds and Oil Palm (NMOOP):

• Aim: Increase the total area under oil palm from the current 3.5 lakh hectares (lh) to 10 lh by 2025-26.
• Growers would be entitled to a minimum “viability price” for their fresh fruit bunches (FFB) production, which is 14.3% of the last five-year-average crude palm oil (CPO) price adjusted for wholesale inflation.
• Special emphasis on north-eastern states and the Andaman and Nicobar Islands due to the conducive weather conditions in the regions.
• Advantage: The focus on oil palm is not misplaced as it is a crop that can yield 20-25 tonnes of FFBs per hectare, translating into 4-5 tonnes of CPO. No other oilseed can give so much: Mustard and groundnut yields aren’t more than 2-3 tonne per hectare and the oil recovery from that is only at 35-40%.
• Concerns: Introducing oil palm in tropical rainforests or biodiversity-rich areas such as the Andaman and Nicobar Islands and the Northeast.
• Direct benefit transfer (DBT) support to farmers. However, the present price rise is an opportunity to replace imports with domestic production, boosting procurement and oil-to-fuel technologies.

Coconut Cultivation in India

India takes pride in being the world’s leading producer of coconuts, boasting a rich history and tradition deeply interwoven with this versatile crop. Coconut cultivation dates back centuries, with evidence suggesting its presence in India as early as 2000 BC.

Coconuts hold immense cultural significance and are used in religious ceremonies, traditional medicine, and daily life. These are also known as the “Kalpavriksha” (tree of heaven).

Uses of Coconut

Every part of the coconut tree is utilized, with the nut providing oil, milk, copra, and shell products, while leaves and trunks offer timber and other uses.

Coconuts find application in various sectors like food, cosmetics, construction, and even fuel. India boasts diverse coconut varieties, each with unique characteristics:

• Tall varieties: Tall, graceful palms yielding high quantities of copra (dried coconut kernel).
• Dwarf varieties: Shorter, quicker-maturing, and high-yielding, popular for tender coconut water.

Regions:

Cultivation thrives along the coastlines of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Odisha, accounting for over 90% of national production.

 Cultivation Practices:

• Intercropping:Often practised with other crops like bananas, pepper, and cocoa, maximizing land use and income.
• Climate dependence:Thrives in tropical climates with moderate rainfall and well-drained soil.
• Harvesting:Climbing trees and using specialized tools, skilled climbers harvest coconuts at various stages of maturity.

Challenges

• Yield stagnation:Average yields remain lower than potential, demanding better agronomic practices and disease control.
• Climate change:Rising sea levels, salinity intrusion, and unpredictable weather patterns threaten coastal coconut farms.
• Value addition:Enhancing value addition through processing and product diversification can improve farmer income and market competitiveness.

Way Forward:

• Sustainable practices:Promoting organic farming, water conservation, and intercropping methods for long-term viability.
• Technological advancements:Utilizing technology for precision agriculture, disease control, and efficient processing to improve yields and quality.
• Branding and marketing:Strengthening brand recognition and exploring export opportunities for premium coconut products.

FAQs related to Oil-Seeds