Narendra Modi is spending billions of dollars on self-reliance. On roads and in factories, the Indian prime minister’s slogan translates to generous subsidies for domestic electric-vehicle batteries, solar panels and green hydrogen – anything that could help reduce excessive reliance on crude imports. However, there is another imported oil to which the country is accustomed: the one used for cooking. Indian kitchens spend $19 billion annually on Indonesian palm, Ukrainian sunflower and Argentine soybean oil.
Food coming from overseas costs dollars, but not only that. In today’s geopolitical climate, it seems unfair to leave the daily base of 1.4 billion people at the mercy of global trade. Self-sufficiency in food has to be a legitimate public-policy concern, as Russia’s suspension of a UN-agreed corridor for grain ships sailing from Ukraine’s ports has been underlined. Eliminating this vulnerability will not require expensive handouts. With some public funding, scientists can get to work. Will the politicians let him go?
We will know the answer soon. New Delhi has given environmental clearance to a genetically modified mustard crop that promises to increase yields by up to 28%. If all goes according to plan, there is a good chance that farmers will have access to GMO mustard before the October 2025 planting season.
So far, Monsanto’s insect-resistant Bt cotton is the only genetically modified crop in India. It was introduced two decades ago amid strong protests by anti-GMO activists. There is still debate as to whether the subsequent jump in cotton yield was due to Bt specialties or more intensive fertilizer use. However, Swadeshi Jagran Manch has raised the biggest objection when it comes to GMO food. [SJM, which is part of the ruling party’s group of affiliate organizations],
According to SJM, instead of making India’s oilseed economy self-reliant, GMO mustard farmers will “severely depend” on a multinational giant like Bayer AG, which has the last patent on the technology. Nevertheless, scientists from Delhi University who have come out with the new version say that their research is publicly funded and, therefore, the new seeds will be reasonably priced.
Coconut oil is popular in South India, while western regions prefer to fry in groundnut oil. Mustard oil is used more in East and North. But local oilseed production has fallen short of demand for almost 25 years. None of the traditional, cold-pressed, filtered oils have managed to hold their own against imported palm, soy and sunflower oils. About 70% of the demand is now met by imports. Prices, which had risen last year, have only cooled slightly. During the Cold War, the Soviet Union assisted India in local sunflower production; America helped soybeans. While the population never warmed to soy milk or nuggets, India became the world’s largest importer of soybean oil. Exactly the same for sunflower, which now meets 10-12% of the country’s annual cooking oil requirement, although local production remains stagnant.
After India began to open up its economy in the 1990s, big food traders such as Archer-Daniel-Midland came by storm. ADM is the largest shareholder of Singapore-based Wilmar International, whose joint venture with the Adani Group controls the country’s top edible oil brand. , Advertising of colourless, odourless, refined liquids won over the middle class. Traditional favorites such as mustard, coconut, peanut and sesame oils ended up looking greasy in comparison. An adulteration scandal in the late 1990s turned the runoff from filtered oils into runoff.
The most price-conscious segment of the market was surrounded by palm oil, which was responsible for the destruction of Indonesian rain forests. Getting rid of 8 million tonnes of imported palm oil could help India reduce the ischemic heart disease mortality associated with it. Yet there is no consensus on whether transgenic crops are the right weapon for this fight. At both ends of the political spectrum, there is a shared fear of farmers losing their right to reuse or sell their seeds. The modified mustard worries honey exporters that the nectar collection of bees will be affected.
India moved closer to approving GMO mustard in 2016, six years after public-health concerns rejected an engineered eggplant. With climate change increasing the uncertainty of food production every year, delaying decisions can be costly. Almost all Canadian canola consumed around the world (including India) is genetically modified. Australia has approved the release of a cross between Indian mustard and GMO canola, noting that the hybrid poses “negligible risk” to people’s health or the environment. The imbalance of three decades will not be fixed in a day. But science can help put traditional oils back on Indian kitchen cabinets.
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia.
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