Context:
Concerns raised over the massive influx of refined Edible Oil (soybean and palm) from Nepal to India, citing a misuse of the South Asian Free Trade Area (SAFTA) agreement’s duty-free import provisions.
Edible Oil Economy of India:
- India is one of the largest oilseed producers, contributing 5-6% to global production
- Major Oilseeds – Groundnut, soybean, sunflower, mustard, sesame, niger, and safflower.
- Global Ranking – India’s vegetable oil economy is the 4th largest in the world, after the USA, China, and Brazil.
- Import Dependency – Domestic production fulfils only about 40-45% of the country’s requirements, with imports accounting for 57% of consumption.
- Government of India sets the Minimum Support Prices (MSP) for various oilseeds to ensure remunerative prices for farmers
- Major Edible Oils in India –
- Traditional Oils: Groundnut, mustard/rapeseed, sesame, safflower, linseed, niger seed, castor, soybean, and sunflower.
| Oil Seeds | Leading Producers |
| Groundnut | Gujarat, Rajasthan |
| Mustard | Rajasthan, Haryana |
| Sunflower | Karnataka |
| Soyabean | Madhya Pradesh, Maharashtra |
- Plantation-Based Oils: Coconut and oil palm (grown in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, and the Andaman and Nicobar Islands).
- Non-Conventional Oils: Rice bran oil and cottonseed oil.
- Forest-Based Oils: Collected from tree and forest sources, primarily in tribal regions.
South Asian Free Trade Area (SAFTA):
- Free trade arrangement of the South Asian Association for Regional Cooperation (SAARC).
- Came into force in – 2006, succeeding the 1993 SAARC Preferential Trading Arrangement.
- Members – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
- Key Provisions –
- Ensures a gradual reduction of tariffs to 0–5% on traded goods.
- Special treatment to Least Developed Countries (Afghanistan, Bangladesh, and Nepal), such as a longer implementation period for tariff reductions, greater exemptions from trade restrictions etc.
- Safeguard Measures allow temporary suspension to protect domestic industries.
Read more about: National Mission on Edible Oils
Source: BL
Previous Year Question
With reference to pulse production in India, consider the following statements:
1. Black gram can be cultivated as both kharif and rabi crop.
2. Green-gram alone accounts for nearly half of pulse production.
3. In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased.
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2020 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Answer: (a)
Explanation:
Statement 2 is incorrect. According to the Directorate of Economics and Statistics (DES), the share of pulse production in 2018- 19 was comprised of Tur (15.34%), Gram (43.29%), Moong (green gram,10.04%), Urad (black gram, 13.93%), Lentil (6.67%), and Other Pulses (10%).
Statement 3 is incorrect. In the last three decades, both, the production of kharif pulses and the production of rabi pulses have increased.