The forthcoming Union Budget is likely to have an agri-policy focusing on oilseed, the Union minister for agriculture and consumer affairs, Sharad Pawar told Business Standard on Tuesday.
Pawar was in Mundra to inaugurate Adani Wilmar Ltd's edible oil refinery.
AWL unveiled India's largest single location edible refinery at Mundra in the gulf of Kutch. The complex has a refining capacity of 22,000 tonne per day and hydrogenation capacity of 350 tonne per day, making it the largest of its kind in the country.
"India has huge demand for edible oil, which may be quantified as 1.10 crore (Rs 11 million) tonne per annum, while we have supply of 50 lakh (5 million) tonne per annum. We have to bridge the gap between the demand-supply of the edible oil and our government has undertaken various projects to overcome this problem. In the next three years, we will be able to solve this problem," said Pawar.
"At present, we have to import oilseeds from abroad, which cost the exchequer around Rs 20,000 crore (Rs 200 billion). By diverting this amount to the farmers to grow more oil seeds as to fulfill present requirements of the country. The current Budget is expected have several projects to the farmers to grow the oils seeds among others.
"The government would focus on six key issues, which include to increase the yield per hectre, horticulture, projects on micro irrigation, genetic upgradation of cattle among others. We are planning to set up an authority for fisheries to help out poor farmers. The recent WTO agreement will be beneficial for the domestic horticulture industry and to be internationally competitive," said Pawar.
Pawar said, "The Centre has taken various policy initiative to benefit the horticulture industry and with the micro finance policy, Gujarat will take the lead. Kutch has huge potential for oil seed farming. Kutch farmers were facing water and electricity shortage. But with the help of the Gujarat government, the problem has been solved to a large extent and the Centre would focus for further development in this area."
The minister also promised new projects for Gujarat. The Kutch district has already received investments worth Rs 18,000 crore (Rs 180 billion) by several companies and many projects are upcoming in the district.
Welcoming the Adani initiative for setting the refinery, chief minister Narendra Modi said, "Kutch has the largest production of oilseeds in the state and we need to focus on the human resource development."
Gautam Adani, chairman of the Adani's group said, "Along with the new projects promised, the government should focus on the current duty on oilseeds."
He also talked about power projects and expansion of Mundra port and the new special economic zone in Mundra.