The Oilseeds production in the country is stagnant at around 26-27 million tonnes and productivity at 950 Kg per hectare. The country is heavily dependent on import. Last oil year (08-09), Country had to import 86 lakh tonnes of vegetable oils at the cost of over Rs.27,000 crores. During the current oil year(09-10), we will be forced to import over 90 lakh tonnes of vegetable oils to bridge the gap between the demand-supply. Our dependence on import of vegetable oils has increased to over 55%. It is a matter of food security and the country cannot afford to depend so heavily on import of such food items.

In view of this, SEA had suggested for:

1. Establish 'Oilseed Development Fund' to raise Production & Productivity.

2. Weighted Income Tax deduction for Oilseed Extension Programme.

3. Re-impose Custom Duty on Vegetable Oils to check excessive import.

It is welcome to note that, the Hob'ble Finance Minister has focused on agriculture sector and announced to organise 60,000 “pulses and oil seed villages” in rain-fed areas during 2010 -11 for providing an integrated intervention for water harvesting, watershed management and soil health, to enhance the productivity of the dry land farming areas. Unfortunately the main issues very important for oilseed sector growth have not been addressed by the Hon'ble Finance Minister.

The situation under which the custom duty on vegetable oils was withdrawn before two years back, no longer exists. Imposing the duty would have generated the additional revenue without affecting the consumers and at the same time would have boosted the farmer's confidence and sentiments to expand area under oilseeds cultivation and the revenue could have been utilized for Oilseeds Development Programme. The industry is disappointed as no concrete action / measure has been suggested in the Budget to encourage oilseed production & productivity.

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