AN ECONOMIC ANALYSIS OF OILSEED SECTOR IN ANDHRA PRADESH

Abstract

The oilseed sector has an important place in Indian agriculture. India is importing 56 % of
countries edible oil requirement. Therefore, the study is carried in focus with the growth of major
oilseeds crops grown in Andhra Pradesh for the period of 1991-92 to 2020-21 using annual compound
growth rates, Cuddy-Della Valle Instability Index, Decomposition analysis and Path analysis to provide
policy options for betterment in oilseed sector. The results revealed that the compound growth rate of
groundnut and niger showed a negative growth rate in all the growth parameters in the overall period
(1991-92 to 2020-21), whereas, sunflower (1.41%) and sesamum (1.04%) showed positive growth
rate in yield. The instability index in all the three growth parameters in palm oil and castor were found
to fall in the category of high instability which showed that there is a larger fluctuation in the acreage
and production during the overall period. The area effect contributed the highest to production
compared to yield and interaction effect in all the oilseeds understudy during the overall period. The
total oilseed under irrigated area is 7.43 percent to the total irrigated area which is the lowest compared
to irrigated food grains and rice fallows in Andhra Pradesh. Hence, there is a need to intensify the
area under oilseeds by promoting water-efficient technologies and assured irrigation facilities to
augment productivity. The Government should take measures to achieve greater levels of
independence in edible oils only by boosting production in various oilseeds including oil palm and
other tree-borne oilseeds.