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Time of India
12 hours ago
- Business
- Time of India
Crop shift: Oilseeds lose ground; government fears maize boom may hit cooking oil self-reliance
This is an AI-generated image, used for representational purposes only. 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. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
a day ago
- Business
- Time of India
India's oilseed output may fall as farmers shift to maize for ethanol
Depressed edible oil prices will likely see Indian farmers choosing to grow maize in place of oilseeds like soyabean and groundnuts keeping India import-dependent for cooking oil. India, the largest importer of edible oils, imports close to 60% of its domestic requirement. The country's pulses imports in 2024 doubled over the previous year, reaching an all-time high of 6.63 million tonnes. "We fear that farmers will replace soyabean and tur with maize as they have not been getting proper prices for their oilseed produce," said a government official, adding that farmers are choosing to sow maize for ethanol production instead of soyabean. The government's promise to procure 100% of pulses produce is likely to encourage farmers to opt for tur, the official added. The government fixed a minimum support price (MSP) of ₹4,892 per quintal for soyabean, but since the start of the new marketing year in October 2024, prices have been 10% to 20% below this level. Live Events "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, Asian Palm Oil Alliance, adding that starting procurement early can help the farmers realise the minimum support price, encouraging them to opt for the oilseed. "And the realisations from soyabean meal are low as the prices of DDGS (distillers dried grain soluble), a byproduct of crushed maize, has suppressed the prices of soyabean meal got from soyabean crushing." Area under soyabean is 2% less, and that under tur down 5% as on June 20 compared to last year. This has prompted agriculture minister Shivraj Singh Chouhan to engage with farmers in key producing states-Madhya Pradesh, Rajasthan and Maharashtra-promising to help them increase productivity, which has been stagnant for some time. Chouhan promised farmers more research on increasing per hectare productivity, genome editing for improved seed varieties, new techniques to prevent root rot and mechanisation due to labour shortages. Chouhan's ministry has also proposed to the petroleum ministry that oversees ethanol production to limit sowing of maize in sugarcane growing areas without compromising on the acreage of other crops such as soybean and pulses. After the government's push to divert maize for biofuel, all India average prices of maize surged from ₹14,000-15,000 to ₹24,000-25,000 per tonne in the last four years, largely attributable to the government's ethanol-blended petrol programme. Economic Times WhatsApp channel )
