GENETICALLY MODIFIED EDIFIED OILS: ECONOMY

GENETICALLY MODIFIED EDIFIED OILS: ECONOMY

NEWS: Niti member bats for GM edible oils for self-sufficiency


WHAT’S IN THE NEWS?

A NITI Aayog member has advocated adopting GM edible oils in India to boost agricultural productivity and reduce heavy import dependence, following successful global models like the USA and China. Embracing GM technology could enhance India's food security, trade competitiveness, and self-reliance under Atmanirbhar Bharat.

Context: Recent Advocacy for GM Edible Oils

  • A member of NITI Aayog has advocated that India embrace genetically modified (GM) edible oils to achieve greater self-sufficiency in edible oils.
  • The suggestion is based on observing significant yield improvements in countries like the United States and China following the adoption of GM technology.

Importance of Edible Oils in India’s Economy

  • Major Agricultural Commodity:
  • India is among the world’s largest producers of oilseeds, making edible oils a vital part of agricultural production and consumer markets.
  • Diversity of Production:
  • India produces a wide range of edible oils, including:
      • Mustard oil
      • Groundnut oil
      • Soybean oil
      • Sunflower oil
      • Safflower oil
      • Coconut oil
  • Contribution to Global Production:
  • India contributes approximately 5-6% of the world’s total oilseeds production.
  • Key Producing States:
  • Major oilseed cultivation is concentrated in:
      • Rajasthan
      • Gujarat
      • Madhya Pradesh
      • Maharashtra
      • Andhra Pradesh
  • Consumption Patterns:
  • Total edible oil consumption in India is around 25.5 million tonnes annually.
  • Consumption mix:
      • Palm oil: ~37%
      • Soybean oil: ~20%
      • Mustard oil: ~14%
      • Sunflower oil: ~13%
  • Health-Related Insight:
  • India’s per capita consumption of edible oils is about 24 kg per annum, which is almost double the limit recommended by:
      • Indian Council of Medical Research (ICMR): 12 kg/year
      • World Health Organization (WHO): 13 kg/year
  • The dramatic increase from 2.9 kg per capita in 1950-60 is attributed to:
      • Rising incomes
      • Urbanization
      • Changing dietary habits toward processed and fried foods.

Dependence on Imports

  • Extent of Import Dependency:
  • India imports 55-60% of its edible oil requirements, making it one of the largest global importers of edible oils.
  • Import Volume:
  • In the 2023-24 oil marketing year, edible oil imports touched approximately 15.96 million tonnes.
  • Major Import Sources:
  • Palm oil:
      • Primarily imported from Indonesia and Malaysia.
  • Soybean oil:
      • Imported mainly from Argentina and Brazil.
  • Sunflower oil:
      • Predominantly sourced from Ukraine and Russia.
  • Economic Impact:
  • Heavy import dependency worsens the trade deficit, vulnerabilizes food security, and exposes India to international price volatility.

Government Initiatives to Boost Domestic Production

  • National Mission on Edible Oils – Oil Palm (NMEO-OP):
  • Objective: Expand oil palm cultivation from 3.7 lakh hectares to 10 lakh hectares by 2025-26.
  • Support: Provides financial assistance for:
      • Planting material
      • Irrigation systems
      • Farm inputs
  • National Mission on Edible Oils – Oilseeds:
  • Goal: Increase domestic oilseed production to 70 million tonnes by 2030-31 (from around 39 million tonnes currently).
  • Price Stabilization Fund:
  • Purpose: Protect consumers from price shocks due to international market volatility.
  • Mechanism: Helps State agencies procure and distribute edible oils at controlled rates.
  • Import Duty Adjustments:
  • The government regularly tweaks import duties on various edible oils to manage:
      • Retail price inflation
      • Supply-demand balance
  • Promotion of Oilseed Cultivation:
  • Programs like NFSM-Oilseeds provide:
      • High-quality seed distribution
      • Technical support
      • Farmer extension services to boost productivity.
  • Public Distribution System (PDS) Support:
  • Edible oils are provided through PDS channels at subsidized rates to mitigate the effects of high inflation, ensuring food affordability for lower-income groups.

Case for Genetically Modified (GM) Edible Oils in India

  • Boosting Agricultural Productivity:
  • India’s soybean yields have remained stagnant for decades.
  • In contrast, countries like the USA and China have experienced significant yield improvements by adopting GM soybean varieties.
  • Estimates suggest that GM crops could double yields or boost them by 70–80%, vastly improving India’s edible oil self-sufficiency.
  • Reducing Import Dependency:
  • India's annual edible oil imports (approximately 16 million tonnes) are a major economic burden.
  • Adoption of GM technology could substantially reduce imports, strengthen domestic production, and enhance national food security.
  • Following Global Trends:
  • Major countries like the United States, Brazil, Argentina, and China have successfully adopted GM crops.
  • No significant adverse health or environmental impacts have been officially reported from GM edible oils in these countries, setting a precedent for safe adoption.
  • Strategic Implications:
  • Embracing GM technology could:
      • Enhance India's agricultural competitiveness globally.
      • Promote technological innovation and modernization in the farming sector.
      • Contribute to Atmanirbhar Bharat (self-reliant India) goals in agriculture.

 

Source: https://economictimes.indiatimes.com/industry/cons-products/food/niti-member-bats-for-gm-edible-oils-for-self-sufficiency/articleshow/120462210.cms?from=mdr