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Resource centre on India's rural distress
 
 

Why oilseeds production in India has remained stagnant

-The Hindu Business Line

Stagnation in the area under cultivation and marginal growth in yields have capped domestic output growth, says a report

Mangaluru: Even while the import-dependent edible oils market in India has been affected by geopolitical factors, the domestic production of oilseeds remains below the global average.

The compounded annual growth rate (CAGR) of oilseeds production in India has remained at 1.94 per cent between 2011-12 and 2020-21, as against global production, which witnessed a CAGR of 2.9 per cent in the same period.

The area under cultivation remaining stagnant, marginal improvement in crop yield, low seed replacement rate, low level of mechanisation of farm activities, and competition from other commercial crops, coupled with price volatility, are the main reasons for the stagnant output.

In its report titled ‘Edible oil: India’s bid to reduce imports and become Aatmanirbhar’, CareEdge -- a knowledge-based analytical group that provides insights based on technology, data analytics and detailed research methods -– attributes the muted growth in domestic production to a restrained increase in the area under cultivation, coupled with a marginal improvement in crop yield over the past 10 years.

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