Explained | Why has the MSP for oilseeds been significantly increased?

Crops such as oilseeds and pulses have witnessed a higher percentage rise in their MSP when compared to major crops such as wheat.

The to boost their production. Notably, crops such as oilseeds and pulses have witnessed a higher percentage rise in their MSP when compared to major crops such as wheat.

The prices of edible oils such as palm oil, sunflower oil, mustard oil etc. have increased by well over 50% in the last one year. This in major edible oil-producing nations such as Indonesia, Malaysia, Argentina, and Ukraine. The government thus hopes to cut down India’s dependence on foreign oil imports by boosting domestic production, and protect Indian consumers from price shocks due to global factors. At the moment, over 60% of India’s edible oil needs are met through imports. In order to boost domestic production, the MSP for rapeseed and mustard seed has been increased by as much as 8% in contrast to a mere 2% increase in the MSP for a major crop like wheat. It is also worth noting that the Centre had last month announced the National Edible Oil mission worth ₹11,040 crore to encourage the domestic production of palm oil. Palm oil is a major ingredient in the food industry and represents a significant share of India’s overall imports.