Lok Sabha Question No. 3507 (UNSTARRED), answered on 2017-08-08
Subject: Edible Oil Trees/Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PONGULETI SRINIVASA REDDY

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 3507

TO BE ANSWERED ON THE 8 TH   AUGUST, 2017

## EDIBLE OIL TREES/CROPS

## 3507.   SHRI PONGULETI SRINIVASA REDDY

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  in  order  to  meet  the  scarcity  and  demand  for  edible  oils  in  the  country,  the Government has encouraged farmers to grow palm oil trees in the 1990s and if so, the details thereof;
- (b) whether farmers are incurring heavy losses due to non-declaration of remunerative price for palm oil;
- (c) if so, the reasons for not announcing remunerative price for palm oil and the other steps taken by the Government to save palm oil tree growers in the country;
- (d) whether it is true that there is no scarcity for edible oils in the country at present due to development of various edible oil crops and if so, the details thereof; and
- (e) whether the Government is not encouraging Palm oil tree growers in the country, if so, the details and the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI PARSHOTTAM RUPALA)

- (a): Yes.  In  order  to  meet  the  scarcity  and  demand  for  edible  oils  in  the  country,  the Government is encouraging the farmers to grow oil palm trees since 1991-92 through various centrally  sponsored  schemes  namely,  Oil  Palm  Development  Programme  (OPDP)  from 1991-92 to 2003-04, Integrated Scheme for Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) from 2004-05 to 2013-14 and Oil Palm Area Expansion (OPAE) from 2011-12 to 2013-14. From 2014-15, National Mission on Oilseeds and Oil Palm (NMOOP) is being implemented in order to increase the production of edible oils. Mini Mission-II of NMOOP is dedicated to Oil Palm Area Expansion and improving the productivity.

Under NMOOP, the financial assistance are provided to the farmers for purchasing of planting  materials,  maintenance  of  plantation  during  gestation  period  (4  years),  inputs  for intercropping  during  gestation  period,  installation  of  drip  irrigation  system,  diesel  pump-sets, bore wells and construction of vermi-compost units, etc. Besides, the training is provided to the farmers  for  oil  palm  cultivation  practices  and  management  through  State  Government  and Indian Institute of Oil Palm Research (IIOPR) of ICAR, Pedavegi, Andhra Pradesh.

(b) & (c): In  order  to  provide  remunerative  price  to  the  oil  palm  growers,  Government  of India  has  recommended a formula for fixation of prices of  Fresh Fruit Bunches  (FFBs) of oil palm in 2012. Respective State Government is fixing the prices of FFBs through Price Fixing Committee (PFC) constituted under the Chairmanship of Commissioner of Horticulture/Secretary  (Agri)  as  per  formula.  However,  in  the  event  of  fall  of  Crude  Palm  Oil (CPO)  prices  in  the  international  market,  Government  is  supporting  price  differences  to  the farmers under Market Intervention Scheme (MIS).

Besides    remunerative  price,  from  2017-18  Government  of  India  has  increased  the subsidy  norms  of  major  components  like  planting  material,  maintenance  cost  of  existing plantation  during  gestation  period  (4  years),  inputs  for  Inter-cropping  during  gestation  period and borewell to motivate the farmers for oil palm cultivation in the country.

(d): Domestic consumption of edible oils has touched the level of more than 23.48 million ton in  2015-16  and  is  likely  to  increase  further  with  enhancement  in  income.  The  production of  domestic  edible  oils  (8.63  million  tonnes  in  2015-16)  both  from  primary  and  secondary sources  has  not  been  able  to  keep  pace  with  the  growth  in  consumption.  The  gap  between production and consumption is being met through huge imports of 14.85 million ton (2015-16). The details of  demand,  supply  and  import of  edible  oils  in  the  country  during  last  4  years  is given below:

(Million ton)

| Years   | Demand   | Supply          | Supply   |
|---------|----------|-----------------|----------|
|         |          | Domestic source | Import   |
| 2012-13 | 19.82    | 9.22            | 10.60    |
| 2013-14 | 21.17    | 10.19           | 10.98    |
| 2014-15 | 23.06    | 9.21            | 13.85    |
| 2015-16 | 23.48    | 8.63            | 14.85    |

(e): Doesn't  arise.

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