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Abstract
Reversing the declining trend in productivity of oilseeds and improving
the efficiency of oilseed processing is a major challenge to the policymakers
and researchers. The present study has analyzed technical inefficiencies
and factors responsible for inefficiencies in production and processing of
four major edible oilseeds, viz. groundnut, rapeseed and mustard, soybean
and sunflower. Both primary and secondary data have been used to
estimate the inefficiencies. Analysis has revealed the presence of 1/4 to
1/3 technical inefficiencies in oilseed production at the average level and
even more at the farm/ processing unit level along with allocative and
scale inefficiencies. The combined technical inefficiencies in the oilseed
sector have been found to be 1/2 to 2/3, which are enormous. If prevented/
minimized, the oil production in the country could nearly be doubled. Soil
quality, seed replacement and education have been found as determinants
of technical efficiency in oilseed production, whereas availability of
adequate raw material and higher oil recovery determine the technical
efficiency in oil production. Lack of assured market for oilseeds and lack
of timely and assured supply of quality seeds and raw materials for
processing are some of the important factors for the poor performance of
the oilseeds industry. Study has reported that the marginal return to water is one of the highest in oilseeds. Therefore, cultivation of oilseeds in
irrigated land if they really compete with other crops for profitability, needs
to be given due consideration.