Can India afford to grow transgenic crops?
ASHOK B SHARMA
Finacial Express, February 28, 2005
http://www.financialexpress.com/fe_full_story.php?content_id=83863

NEW DELHI, FEB 27: An assessment done by the Economic Survey 2004-05 on the status and future of agriexports in India has raised a pertinent question as to whether India can afford to grow transgenic crops.

Referring particularly to the exports of oil meals from India, the survey said that its growth has increased and sustained on account of its "non-GM nature."

India has not yet approved any genetically modified (GM) oilseed crop for cultivation. GM mustard seed varieties, which were developed by PrvoAgro, were not approved by the regulatory authority.

The Economic Survey, which is an annual report prepared by a team of experts in the government, said: "Indian oil meals command a premium because of their non-GM nature."

It noted that the demand for Indian oil meals is increasing as the world market is flooded with oil meals of GM oil seeds.

The survey said that the export of oil meals gained substantially both in terms of volume and share during 2002-03. The growth was also sustained during the first half of 2004-05, because of the increasing demand for Indian oil meals in the world market. Oil meals are used as poultry and cattle feed.

Exports of oil meals increased phenomenally from 18,96,521 tonne in fiscal 2002-03 to 33,23,025 tonne in fiscal 2003-04. Even in the first nine months of the fiscal 2004-05, the exports of oil meals marked an increase.

India imports a substantial quantity of vegetable oils to meet domestic needs. The exports of oil meals partly offsets the foreign exchange outgo on account of imports of vegetable oils.

In the first six months of the fiscal year 2004-05, imports of vegetable oils (for edible purpose) was valued at $1,235.60 million, consisting of 69.10% of the total agricultural imports.

Generally, annual imports of edible oils are to the tune of $1,800 odd million and constitute around 72% of the total agricultural imports.

Comparatively, exports of oil meals in the first six months of the 2004-05 fiscal year beginning April, 2004 was $298.40 million, constituting 8.5% of the total agricultural exports.

In 2003-04, exports of oil meals was to the tune of $728.70 million, constituting 9.7% of total agricultural exports.

The vegetable oil industry has estimated imports of edible oils as per each oil year, which begins from November 1. According to industry data, 43,96,587 tonne of vegetable oils (for edible purpose) was imported in the oil year 2003-04. Imports of non-edible oils was 2,35,163 tonne.

In the first two months of the current oil year 2004-05, the imports have shot up to 6,29,731 tonne as compared to 5,15,143 tonne in the first two months of the previous oil year.

According to industry data, exports of oil meals increased phenomenally from 18,96,521 tonne in fiscal 2002-03 to 33,23,025 tonne in fiscal 2003-04. In the first nine months of the fiscal 2004-05, the exports of oil meals also marked an increase.

The exports of oil meals in the period April 2004 to December 2004 was 1,948.631 tonne as compared to 1,612,350 tonne in the first nine months of the previous fiscal year.

Indian oil meals are generally exported to Korea, Singapore, Thailand, Malaysia, China, Japan, Vietnam, Indonesia, The Philippines, Taiwan, Sri Lanka, Mauritius, Bangladesh, Pakistan, Kenya, Egypt, Dammam, UAE, Baharain, Oman, Abu Dhabi, Jebel Ali, Kuwait, Iran, Iraq and Sharjah.

Apart from these traditional export destinations, Indian oil meals have found their way into the European Union, on account of the non-GM character.

Italy has emerged as one of the main importers of Indian oil meals. Indian oil meals are also re-exported to Europe from Abu Dhabi (in Dubai) and Singapore. The European Union has recently allowed imports of two varieties of transgenic corn, but its acceptance by the public is very low.