... by distributing edible oil
December, 2016 in Issue 4 - 2016, Comment
Wake-up call
It is often said in jest that the Indian government does the most rational things, but only after exploring other possibilities. It looks like policy makers are still exploring. One reason could be that, unlike pulses – the shortage and strident price rise of which over the past year has put the government on the defensive – edible oil prices have not evoked any strong consumer response.
But it may only be a matter of time. Vagaries of nature and vicissitudes of the market are less predictable. What happened in the case of pulses can happen in edible oil too. So, this article should be treated as a wake-up call.
India’s self-reliance is low and dependence on the world market for meeting domestic shortfall is rather high at about 65%. This makes the country tremendously vulnerable to external factors over which it will have little control. This risk needs to be mitigated.
The oilseeds and oils sector deserves policy support, research support and investment support. Lessons from the so-called ‘dal-shock’ lend a sense of urgency to designing a progressive long-term policy for the country’s oilseeds and oils sector, so as to make it less vulnerable and more competitive.
Trade and industry associations have an opportunity to demonstrate their vision and strategic action plan for the sector by providing policy inputs.
G Chandrashekhar
Global Agribusiness and Commodity Sector Specialist
India
