Mumbai, Oct 3: Exports of both groundnuts and groundnut extraction have been sliding consistently over the years, but "a transitory reverse in the export markets does not warrant a sense of despondency," said Groundnut Extractions Exprot Development Association (GEEDA) chairman SB Jhaveri. "We are fortunate in being blessed by a huge domestic market, which has an excellent growth potential in the years to come," Jhaveri said recently while addressing the GEEDA members at its 31st annual general meeting. Global trade in groundnut meal has dropped from a peak of two million tonnes in 1976, when India's share was placed at 1.25 million tonnes, to an "insignificant" 0.27 million tonnes in 1999 where India's share is only 25,000 tonnes. Even groundnut production has dropped to 5.6 million tonnes (in shell) during 1999-2000 against 9.2 million tonnes in 1989-99, a sharp decline of 40 per cent. This caused a significant strain on the availability of groundnut meal as well. However, this trend does not causedespondency, Jhaveri feels.Recognising the importance of capitalising on every opportunity to rebuild exports, Jhaveri underscored that the orientation might have to be changed to cater to the doemstic demand. This, "because in the years to come the national market may well-nigh become the cornerstone of survival of the industry, as the domestic market has given ample indications not only of its growth at a fast clip, but also of a reasonable prospect of an upward trend to be sustained, given the size of the population and rising per capital income," Mr Jhaveri said.
Against this scenario, Mr Jhaveri felt that a stronger oilseeds processing industry can help not just arrest the consistently sliding edible oil prices in the country, but also support the oilseeds farmer as well.
"It was imperative that well-conceived and pragmatic measures were devised to enable the oilseeds processing industry to support the oilseeds farmer," said Mr Jhaveri.
According to Mr Jhaveri, it would be fanciful to expect the official price support mechanism to sustain the entire marketing operations of the oilseeds grower, as there can be no alternative to open market sale of the agricultural produce in a vast economy like ours. "The oilseeds cultivator and the vegetable oils processing industry had a relationship of mutual dependence. Let it be clear to those in authority that if cultivation of oilseeds in our country has to survive, then the processing industry cannot be allowed to languish," cautioned Mr Jhaveri.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.