Option for Increasing Income of Oilseeds Growers in India

The self-sufficiency in edible oil production is always a major concern for policy makers in India. The present study has analysed the supply and demand situation in the edible oils sector and has suggested the ways to improve the oilseeds growers’ income with special emphasis on recent import policy changes by the government. Even though the production had grown since 1980s, the area and yield of oilseeds have not improved much. The high price support policies given to the oilseeds sector as compared to cereals have not been found effective in raising their market prices and subsequently, the income of oilseeds growers. More than ten per cent growth in import of palm oil and soybean oil had occurred over the years pointing higher consumption demand and cheaper import prices. The impact of tariff hike analysed through partial equilibrium model has been negative on the whole economy due to reduced consumer surplus, whereas tariff hike will benefit the oilseeds growers’ through at least five per cent increase in edible oil price. Further, more attention should be given to enhance the yield of oilseeds in order to achieve self-sufficiency in the country.