Crop shift: Oilseeds lose ground; government fears maize boom may hit cooking oil self-reliance

Time of India

7 hours ago

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Indian farmers are increasingly opting to grow maize instead of oilseeds such as soyabean and groundnut due to depressed market prices, a trend that could worsen India's dependence on edible oil imports.
As per ET, a senior government official warned that the low returns from oilseed cultivation are prompting growers to switch to maize, particularly for ethanol production.
'We fear that farmers will replace soyabean and tur with maize as they have not been getting proper prices for their oilseed produce,' the official said.
This comes despite the government's push to enhance domestic oilseed production and reduce reliance on imports.
Currently, India imports nearly 60% of its cooking oil requirement, making it the world's largest importer.
The official also noted that the government's plan to procure 100% of pulse produce may still encourage some farmers to sow tur. However, the area under soyabean cultivation is already down 2%, and tur by 5% as of June 20 compared to the previous year, reported ET.
The minimum support price (MSP) for soyabean has been fixed at Rs 4,892 per quintal, but market prices have hovered 10-20% below this level since October 2024, largely due to weak soyabean meal demand.
'Despite cooking oil prices being relatively higher than last year, soyabean prices have ruled below the MSP because of low realisation from the soyabean meal,' said Atul Chaturvedi, executive chairman of the Asian Palm Oil Alliance, as quoted by ET.
Chaturvedi added that early procurement could help farmers achieve MSP and encourage oilseed cultivation.
However, the soyabean meal market has been adversely affected by falling prices of distillers' dried grain soluble (DDGS), a maize byproduct, which is widely used in livestock feed.
In response to the falling acreage, Agriculture Minister Shivraj Singh Chouhan has begun engaging with farmers in major oilseed-producing states, including Madhya Pradesh, Rajasthan, and Maharashtra.
Chouhan promised increased research for productivity, genome-edited seeds, mechanisation support, and measures to prevent root rot. He also proposed that the petroleum ministry regulate maize cultivation in sugarcane zones to protect oilseed and pulse acreage.
Prices of maize have surged from Rs 14,000-15,000 to Rs 24,000-25,000 per tonne over the past four years, driven by the Centre's aggressive ethanol-blended fuel programme. This price rise is further incentivising farmers to shift away from soyabean.
With pulses imports hitting a record 6.63 million tonnes in 2024, double the previous year, policymakers are now facing the challenge of stabilising oilseed cultivation to ensure long-term food and trade security.
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