Economic Impact of Improved Mustard Varieties: A Case of Giriraj

Edible oilseeds are the main source of protein and fat. Despite being one of the largest producers of oilseeds, India relies heavily on imports of edible oils to meet its domestic demand. In 2022-23, the country imported 16.5 million tons of edible oils, almost 57% of its domestic demand. Palm oil comprised 59% of the total imports, followed by crude soybean oil (23%), and sunflower oil (17%). Notably, there is a significant geographical concentration of their imports: palm oil is imported from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Ukraine, Russia, and Argentina. Such a high dependence on imports and their geographical concentration makes the country highly vulnerable to global supply shocks due to pandemics and geopolitical tensions. Fluctuations in global prices may compel the government to reduce import tariffs and offer incentives to industry and importers. Furthermore, heavy reliance on imports adversely affects the country’s foreign reserves, and acts as a disincentive for farmers to expand area under oilseeds.