The Yellow Revolution and After

How the Technology Mission on Oilseeds briefly made India nearly self-sufficient in edible oils in the early 1990s, and why imports surged after trade liberalisation.

In the late 1980s, India launched a push for oilseed self-sufficiency, called the Yellow Revolution.

Technology Mission on Oilseeds

Launched in 1986, it provided:

Better seeds and technology.
Price support and procurement.
Protection from imports through restrictions.
Processing support.

Success

By the early 1990s, India became nearly self-sufficient in edible oils, with imports falling to a small share of consumption.

What changed

In the mid-1990s, after liberalisation and WTO commitments, India lowered import barriers on edible oils.
Cheap palm oil from Indonesia and Malaysia and soybean oil from Argentina and Brazil flooded in.
Domestic oilseed farming became less profitable.
Imports rose steadily and now meet over half of demand.

The trade-off

Consumers benefited from cheaper oil.
Farmers and domestic processors lost out.

Lesson

Self-sufficiency achieved through protection can reverse when protection ends, unless productivity rises enough to compete.

The cheaper tin

In the late 1990s, imported palm oil made cooking oil cheaper for households. But mustard farmers in Rajasthan found it harder to sell their seeds profitably.

Thinking India never grew enough oilseeds

It was nearly self-sufficient in the early 1990s.

Key takeaways

The Technology Mission on Oilseeds began in 1986.
India nearly achieved oil self-sufficiency by the early 1990s.
Lower import barriers after the mid-1990s increased imports.
Consumers gained; farmers lost.