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

Sub: Geo

Sec: Eco geo

Updated Agricultural Policies in India:

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%
Basmati Rice Export Policy:
- Minimum export duty on Basmati rice removed
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
Onion Export Duty Reduction:
- Export duty on onions reduced from 40% to 20%
- Aimed at benefiting onion farmers and related sectors
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:

Category	Details
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