The Hindu Business Line : Comprehensive policy on oilseeds soon: Pawar

THE Agriculture Ministry is set to announce a comprehensive oilseeds policy that would spell out incentives to increase the acreage for different oil-yielding crops and make the country self-reliant in the sector.

"I think it is not proper that we are importing nearly 45 per cent of our edible oil requirement. To increase the acreage and yield of oilseeds crops, my Ministry will come out with a comprehensive policy in the next two to three months," the Agriculture Minister, Mr Sharad Pawar, said inaugurating the second phase of the Adani-Wilmar promoted 2,200 tonnes a day edible oil refinery.

The Minister said the Government had already taken steps to encourage oilseeds production by increasing the support price.

The policy would also address credit requirements of farmers in an effort to encourage them to grow oilseeds, he said.

The country consumes nearly 110 lakh tonnes of oil annually, which is expected to rise to 150 lakh tonnes by 2010. Due to lack of domestic production, 45-50 lakh tonnes oil was being imported each year.

"While I am personally against import of oilseeds, it is better than having to import the finished product. My Ministry is looking at steps to ease oilseed imports so that crushing and refining could provide employment in the country," the Minister said.

Mr Pawar, however, did not specify whether his Ministry had recommended any duty cut to ease oilseed imports.

The industry claims it is unremunerative to import oilseeds as of now because of stiff duties, strict phyto-sanitary norms and the requirement of the seeds to be imported in split form.

For the Budget, Mr Pawar said the Agriculture Ministry had identified certain thrust areas for the growth of the sector.

These include efforts to increase crop yields, promotion of horticulture and minor irrigation schemes.

The Agriculture Ministry had also suggested a new promotion and regulatory body for the fisheries sector on the lines of the National Dairy Development Board and had decided to support genetic upgradation of cattle in the country, the Minister added.

Earlier, Mr Pawar inaugurated the second phase of the Adani-Wilmar edible oil refinery, built with an investment of Rs 300 crore.

Post-expansion, the installed capacity of the plant has gone up from 1,000 tonnes per day to 2,200 tonnes per day. Adani Wilmar Ltd, a 50:50 joint venture between the Adani Group and Wilmar of Singapore, now has an installed capacity in excess of 3,000 tonnes per day in four locations across the country. The company is also set to commission a 600-tonnea-a-day edible oil refinery in Sri Lanka in the next couple of months, according to Mr Gautam Adani, the Chairman of the group.

Favours breaking APMCs' monopoly: Mr Pawar said the Centre favoured breaking the monopoly of agriculture produce marketing committees (APMCs) in selling farm produce in an effort to ensure better prices to farmers and end-users.

"I feel that the monopoly of APMCs should be broken so that the private sector can directly sell agricultural produce," Mr Pawar said.

In fact, even the National Bank for Agriculture and Rural Development (Nabard) had suggested that the APMCs should not have the monopoly rights to market agricultural produce, he said.

"If the private sector can source products directly from the farmers, both the farmers and the end-consumers can benefit. We have recently written to the (Gujarat) State Government to allow farmers to directly sell their produce if they get better prices," the Nabard Chief General Manager (Gujarat), Mr Bhawar Puri, told Business Line.

Mr Puri said farmers were often unable to approach an APMC as they were controlled by traders and getting a fair price was not possible.

Also, small farmers found it difficult to sell smaller quantities of their produce to meet any urgent cash requirements, Mr Puri added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Satnam net rises 43 pc

`Tap domestic market potential for organic products'

Mussel power

Rubber declines as dealers cut stocks

Water levels drop marginally at major reservoirs in Kerala

Comprehensive policy on oilseeds soon: Pawar

Positive health reports on cashew boost exports