Market

Market

Saturday, May 12, 2012

THE "OILY" MESS-THE CONTINUING SAGA OF INDIAN CONSUMER


Edible oil has always been the "Achilles Heel" of the Government of India while the pulses situation borders on a trauma! No matter who rules the country the edible oils and pulses have always been the "playing field" for hoarders, industry, traders and importers to make money at the expense of the citizen. Except playing lip sympathy Government has proved its impotence in addressing the problem of shortage with the oil mafia holding the consumer to ransom year after year. Whether oil is an essential commodity required ad libitum for the health of the consumer is a bigger question that was never answered, considering it is one of the root causes of obesity and other food related diseases. If the per capita availability of edible oils in the country is taken into consideration it meets the average nutritional need of a person but averages never tell the real story with consumption invariably being lop sided. A report that the vegetable oil imports have registered a quantum jump recently is alarming though the reasons for this undesirable development may be many. Here is a gist of the above report which deserves serious attention by all concerned to think about the way India can get out of this perennial trap.

"A sustained slowdown in domestic oilseed crushing activity has led to an increase in the import of vegetable (veg) oil in recent months. Consequently, overall import of veg oil shot up 73 per cent in the second quarter of the current oil year (November 2011–October 2012) as against 31 per cent growth in the first quarter, to meet a deficit created by lower production from domestic sources. Data compiled by the Solvent Extractors' Association (SEA) showed overall veg oil import rose 95 per cent to 897,404 tonnes in April alone, compared with 475,123 tonnes in the corresponding month of the previous year. During the last quarter of the current oil year, import surged to 2.52 million tonnes (mt) compared to 1.46 mt in the same period last year. With a marginal decline in the first quarter, owing mainly to increased availability from domestic sources on intensified local crushing, the overall import of veg oil recorded a 31 per cent increase at 4.71 mt, against 3.6 mt in the comparable period last year".

Is there a serious flaw in the planning of agriculture in this country and if so who is responsible for it? Can all those who ruled in the past and present can be absolved of the responsibility in bringing the country to such a sorry pass? Excuses are galore when it comes to enforcing accountability but such excuses need to be brushed away mercilessly to punish those guilty. What type of planning is done by the much touted National Planning Commission during the last 5 decades? It is simply common senses to understand that the production problems of oil seeds and pulses are closely linked to the agricultural policy and the governments do not seem to have the required determination to evolve a long term policy for the agriculture. After all farmers will produce only those crops that will give maximum returns to his labor. Look at the sugarcane policy which ensures high returns in the range of Rs 50,000  per acre and if the land is suitable or water is available 365 days as in areas near Mandya District in Karnataka, farmers cannot be forced to switch over to other crops. It is for the government to persuade the farmers to grow certain crops as a part of the national policy through various fiscal incentives. Unless this is done India will remain a massive importer of oils and pulses eternally.
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

No comments: