How Edible Oil Imports Impact Akola’s Soybean and Sunflower Farmers

thenewsdirt
May 7
6 min read

In the Vidarbha region of Maharashtra, Akola’s fields stretch across over five lakh hectares, planted with crops that determine the course of local livelihoods. Among these, soybean and sunflower hold particular significance.

They are indicators of how local farming intersects with global trade, national policy, and technological advancement.

Each planting season in Akola begins not just with seeds sown into soil but with the weight of international markets and domestic strategies bearing down on every harvest.

The Scale of India’s Edible Oil Imports and Its Effect on Domestic Prices

India’s demand for edible oil has grown rapidly in the past decade. Between 2012-2013 and 2015-2016, per capita consumption increased from 15.8 kg to 19.5 kg, a shift driven by urbanisation, changing food preferences, and higher disposable incomes.

To meet this growing need, the country imported 165 lakh tonnes of edible oil in 2022-2023. These imports, consisting mainly of palm oil, soyoil, and sunflower oil, came from countries like Indonesia, Malaysia, Argentina, Brazil, Russia, and Ukraine.

This level of import dependency, accounting for 55 to 60 percent of national edible oil demand, creates vulnerabilities. When the Russia-Ukraine conflict disrupted sunflower oil supplies, it exposed the risk of such heavy reliance.

The impact was immediate. Imported sunflower oil became costlier, and ripple effects were felt across the domestic edible oil market. Cheaper alternatives like palm oil flooded in, pushing down prices and directly affecting local oilseed rates.

For farmers in districts like Akola, the consequences are sharp. Despite cultivating large quantities of soybeans and sunflowers, they are often forced to sell at prices that fail to reflect their input costs.

The situation is compounded when imports undercut domestic produce. In Yavatmal, farmers have refused to sell soybean harvests that fell below the minimum support price (MSP). The same pressures weigh on farmers in Akola, where market conditions make it difficult to plan around production costs and income expectations.

Although India is one of the leading oilseed producers, the gap between production and consumption continues to grow.

Factors like stagnant yield growth, limited expansion of oilseed acreage, and unpredictable weather contribute to this shortfall.

As a result, even regions with favourable agro-climatic conditions, such as Vidarbha, struggle to meet national demand.

For oilseed farmers in Akola, the competition with foreign oils has turned into a recurring challenge, shaping every economic decision from sowing to selling.

Government Programmes to Expand Oilseed Production and Improve Farmer Support

In response to the increasing import burden, the Indian government launched the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) in 2024.

The mission aims to raise domestic edible oil production from 12.7 million tonnes to 25.45 million tonnes by 2030-2031. Its strategy includes supporting high-yielding oilseed varieties, genome editing, and expanding the cultivation area to reduce dependency to 28 percent.

Although the mission includes various oilseeds, its focus on crops like soybeans offers targeted relief to regions such as Akola.

In 2021, the Centre also distributed mini-kits of improved oilseed varieties, including soybean, to increase productivity in states like Maharashtra. These free kits reached thousands of farmers and were meant to raise yields through the adoption of better seeds.

Maharashtra’s own initiatives supplement these national schemes. The Namo Shetkari Mahasanman Nidhi Yojana provides financial assistance to registered farmers, adding a support layer even though it is not specific to oilseeds.

Alongside this, the state promotes micro-irrigation and organic farming through the Agriculture Department, which could be beneficial for soybean and sunflower cultivation in rainfed areas like Akola.

Market linkages have also been addressed. The Maharashtra State Agricultural Marketing Board plays a crucial role in connecting farmers to buyers, enabling them to secure more competitive prices.

However, while these schemes offer support, their effectiveness is tied to how well they are implemented at the ground level. The success of these programmes depends not only on availability but also on outreach, training, and timely distribution, particularly in the interior

farming districts.

Akola’s Contribution to Oilseed Farming and Research-Backed Cultivation

Akola’s importance in Maharashtra’s agricultural economy is grounded in both its crop diversity and research support.

With 5.43 lakh hectares under cultivation, the district grows soybean, sunflower, cotton, and pulses, and remains one of the top soybean-producing regions in the state. In 2023, Maharashtra produced 46.92 lakh tonnes of soybean during the Kharif season, and Akola contributed significantly to this figure.

The presence of Dr. Panjabrao Deshmukh Krishi Vidyapeeth in Akola adds to the district’s agricultural strength. Its Oilseed Research Unit has been instrumental in recommending practices and seed varieties suited to the region.

One of the widely recommended varieties, TAMS 98-21, is known for its effectiveness when sown early. Studies suggest that the timely sowing of soybeans enhances yields, making a strong case for research-based farming in the region.

Sunflower farming, though limited compared to soybean, also benefits from local research. Trials on integrated nutrient management and dual inoculation have shown that nitrogen fertiliser requirements can be cut by half, making cultivation more cost-efficient.

Additionally, intercropping sunflower with soybean has been promoted to optimise land use and improve returns, particularly for smallholder farmers.

These agricultural practices are not theoretical. They are applied in real fields across the district, where farmers experiment with new methods under guidance. The marketing board’s involvement in connecting growers to buyers further increases the effectiveness of these efforts. However, problems persist.

Pests continue to affect sunflower crops, and changes in rainfall patterns disrupt seasonal planning. In 2020, germination failures in soybean were reported, reducing yields and undermining farmer confidence in improved seeds.

Persistent Risks and the Outlook for Farmers in Akola

While national programmes and research institutions attempt to stabilise the oilseed sector, Akola’s farmers remain exposed to multiple risks.

The influx of cheaper imported oils, especially palm oil, continues to place downward pressure on domestic prices. Even when MSPs are announced, they are not always honoured in market transactions.

Farmers in regions like Yavatmal have withheld produce in protest, signalling systemic issues in procurement and pricing. Similar experiences are likely shared in Akola, where crop values frequently do not match input expenses.

The region’s dependence on rainfed farming adds another layer of vulnerability. Around 72 percent of oilseed cultivation in Vidarbha is rain-dependent.

When monsoons fail or arrive irregularly, both yield and quality suffer. Sunflower crops are also highly sensitive to pest attacks, which, without proper extension services, can cause widespread damage. The financial strain of managing crop protection measures adds to the growing cost burden already carried by farmers for seeds, fertilisers, and labour.

Despite these challenges, there are measurable benefits from improved farming methods. The adoption of early sowing for soybean and nutrient management in sunflower has enhanced yields. Government schemes that provide free or subsidised seeds have reduced input costs.

Market support initiatives are present, though their reach varies. These factors, when combined with consistent weather patterns and reliable pricing, have the potential to improve farmer incomes.

Akola’s position as a significant oilseed-producing district reflects both its strength and its fragility.

On one hand, it contributes to Maharashtra’s edible oil capacity and benefits from scientific support. On the other hand, it faces real constraints from global market pressures, unpredictable climate, and incomplete policy implementation. Farmers here do not work in isolation. They are directly influenced by decisions made across continents, supply disruptions caused by conflicts, and procurement delays within state systems.

Their fields mirror the complex intersection of global economics and rural realities. In Akola, each planting cycle is shaped by more than just weather. It is shaped by trade, technology, and the hope that this season, the margins will favour the grower.