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6) Despite a huge domestic market for palm oil, India has not been able to increase its domestic production. Critically examine.(250 words)

Topic Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.

6) Despite a huge domestic market for palm oil, India has not been able to increase its domestic production. Critically examine.(250 words)

Reference

Why this question

India is one of the largest  consumer as well as importer of palm oil. In this context it is important to examine the reasons behind as to why domestic production of palm oil has not increased.

Directive word

Critically examine- here we have to probe deeper into the topic,  get into details, and find out the causes or implications if any. based on our discussion we have to form a concluding opinion on the issue.  

Key demand of the question.

The question wants us to dig deep into the issue and bring out the reasons as to why India has not been able to increase its palm oil production despite a growing and sustained demand in the domestic market.

Structure of the answer

Introduction– write a few introductory lines about India’s palm oil consumption and import. E.g India’s vegetable oil economy is the fourth-largest.Yet the country relies on imports to meet over 70 percent of its vegetable oil requirements; almost 60 percent of the requirement is met through palm oil.

Body-

Discuss why India has not been able to increase the domestic production of palm oil. E.g By 2012, the government had identified 2 million ha across the country for oil palm cultivation and decided to implement the National Mission on Oilseeds and Oil Palm (NMOOP) under the 12th Five Year Plan (2012-17). Though the Mission received an initial enthusiasm, the targets have been routinely missed; Like other perennial tree crops, oil palm requires regular pruning of fronds, weeding and watering, which is manually quite expensive;Oil palm is not economical for small landholders and tenant farmers as there is practically no income in the first few years. Besides, it is susceptible to market and seasonal fluctuations; market trends show prices have risen and fallen by up to 50 per cent over the past 15 years. Agricultural returns are also cyclical in nature. Farmers harvest almost 65 per cent of the annual yield between June and September and earnings remain low during the lean winter months etc.

Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.

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