Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
5. Why does India have to import edible oils? What is the burden of importing edible oils on the government’s exchequer? What can we do to boost the domestic production of edible oils? Elaborate. (250 words)
Reference: Indian Express.
Why the question:
The article explains that the edible oil prices have risen sharply in recent months. It provides for a look at the reasons, and the options before the government for price control.
Key Demand of the question:
Discuss why India needs to import edible oils, discuss its burden to the exchequer and what needs to be done to make India self-reliant in edible oils.
Elaborate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Start with some key facts related to the context of the question such as – The prices of six edible oils — groundnut oil, mustard oil, vanaspati, soya oil, sunflower oil, and palm oil — have risen between 20% and 56% at all-India levels in the last year.
Briefly first discuss the trends of oil consumption in India; with rising incomes and changing food habits, consumption of edible oils has been rising over the years.
Explain how much is produced domestically and how much is imported?
Explain that the increase in domestic prices is basically a reflection of international prices because India meets 56% of its domestic demand through imports. In the international market, prices of edible oils have jumped sharply in recent months due to various factors.
Discuss what we can do to boost the domestic production of edible oils.
Conclude with policy measures and solutions to make India self-reliant in edible oils.