Increase in import duty on edible oil to help farmers: Shivraj Singh Chouhan

  • September 15, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Increase in import duty on edible oil to help farmers: Shivraj Singh Chouhan

Sub: Geo

Sec: Eco geo

Updated Agricultural Policies in India:

  1. Edible Oil Import Duty Increase:
    • Import duty on edible oils raised from 0% to 20%
    • Basic duty on refined oil increased to 32.5%
    • Total effective duty on imported edible and refined oils: 27.5%
  2. Basmati Rice Export Policy:
    • Minimum export duty on Basmati rice removed
  3. Impact on Farmers:
    • Expected to benefit oilseed farmers, especially soybean and green gram producers
    • Likely to increase sowing of oilseeds in Rabi season
    • Anticipated boost in mustard crop prices
    • Potential increase in soya production and exports
  4. Onion Export Duty Reduction:
    • Export duty on onions reduced from 40% to 20%
    • Aimed at benefiting onion farmers and related sectors
  5. Onion Price Control Measures:
    • Subsidized retail sale of onions at ₹35 per kg through NCCF and NAFED
    • Expanded retail sales to e-commerce platforms, Kendriya Bhandar, and SAFAL outlets
    • Implementation of bulk sales strategies
    • Improved logistics using road and railway networks to reduce post-harvest losses

Details of crops in news:

CategoryDetails
Onion Production in India
Global Ranking
  • 2nd largest producer (after China)
Major Producing States
  • Maharashtra, Madhya Pradesh, Karnataka, Gujarat, Rajasthan
Annual Production (2023-2024)
  • 26-28 million tonnes
Growing Seasons
  • Kharif (monsoon), Rabi (winter)
Challenges
  • Price volatility, storage issues, export restrictions during shortages
Soybean Production in India
Global Ranking
  • 5th largest producer (After USA, Brazil, Argentina and China)
Major Producing States
  • Madhya Pradesh, Maharashtra, Rajasthan, Karnataka
Annual Production (2023-2024)
  • 12-13 million tonnes
Primary Growing Season
  • Kharif (June to October)
Uses
  • Oil extraction, animal feed, various food products
Oilseed Production in India
Global Ranking
  • One of the largest oilseed producers globally
Major Oilseed Crops
  • Groundnut, rapeseed & mustard, soybean, sunflower, sesame
Annual Production (2023-2024)
  • 37-38 million tonnes (all oilseeds combined)
Key Producing States
  • Rajasthan, Gujarat,  Madhya Pradesh, Maharashtra (varies by crop)
Challenges
  • Low yield compared to global standards, dependence on monsoon, competition from imported oils

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED):

  • Established on October 2, 1958 (Gandhi Jayanti).
  • Apex organization of marketing cooperatives in India.
  • Registered under the Multi-State Co-operative Societies Act 2002.
  • Primary Objectives:
    • Promote cooperative marketing of agricultural produce.
    • Facilitate farmers in getting better prices for their produce.
    • Implement price support operations for pulses and oilseeds.
  • Key Functions:
    • Procurement of agricultural commodities at Minimum Support Price (MSP).
    • Distribution of agricultural inputs like seeds and fertilizers.
    • Export promotion of agricultural and processed food products.
    • Implementation of Price Stabilization Fund (PSF) operations.
  • Government Role:
    • Works under the administrative control of the Ministry of Agriculture and Farmers Welfare.
    • Acts as a central nodal agency for procurement of notified agricultural commodities.
    • Recent Initiatives: E-Kisan Mandi: An online platform for direct selling of farm produce.

Source: TH

Geography Increase in import duty on edible oil to help farmers: Shivraj Singh Chouhan