GS PrelimsAgricultureMinimum Support Price (MSP)2004

Consider the following statements: India continues to be dependent on imports to meet the requirement of oilseeds in the country because: 1. Farmers prefer to grow food grains with highly remunerative support prices. 2. Most of the cultivation of oilseed crops continues to be dependent on rainfall. 3. Oils from the seeds of tree origin and rice bran have remained unexploited. 4. It is far cheaper to import oilseeds than to cultivate the oilseed crops. Which of the statements given above are correct?

A

1 and 2

B

1, 2 and 3

C

3 and 4

D

1, 2, 3 and 4

Correct Answer: Option B

Explanation

Reasons for India's dependence on imports to meet oilseeds requirements (around 2004): 1. Statement 1: Farmers often prefer to grow food grains like wheat and rice because they have assured remunerative support prices (MSP) and established procurement systems, making them less risky compared to oilseeds where price volatility and procurement might be less certain. This diverts acreage from oilseeds. This is a valid reason. 2. Statement 2: A significant portion of oilseed cultivation in India occurs in rainfed areas, making yields heavily dependent on rainfall and subject to monsoon variability. Lack of irrigation limits productivity. This is a valid reason. 3. Statement 3: While there is potential for oils from seeds of tree origin (like sal, mahua) and rice bran, their collection, processing, and integration into the edible oil pool faced challenges and were relatively unexploited compared to traditional oilseed crops. This contributed to the supply gap. This is a valid reason. 4. Statement 4: Whether it is far cheaper to import oilseeds/oil than to cultivate them domestically is debatable and depends on international prices, domestic costs, and policy objectives (like farmer welfare, self-sufficiency). While imports might bridge the gap efficiently at times, stating it's *far cheaper* might be an oversimplification and not the primary structural reason for dependence. Given the answer key is 'A' (1 and 2), the examiner considered only the preference for food grains due to MSP and the dependence on rainfall as the correct reasons, dismissing the potential of non-traditional oils and the cost comparison with imports as significant factors.

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