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  • 15 November, 2022

  • 5 Min Read

India's Edible Oil Industry

India's Edible Oil Industry

  • In a recent argument against the approval for the release of GM mustard into the environment, the Centre cited the fact that India is currently importing and consuming oil made from Genetically Modified (GM) crops.
  • Also, around 9.5 million tonnes (mt) of GM cotton seed is produced annually and 1.2 mt of GM cotton oil is consumed by human beings, and about 6.5 mt of cotton seed is consumed as animal feed.

What is the state of the Indian edible oil industry?

Area of the nation's economy:

  • One of the world's top producers of oilseeds is India.
  • The oil sector has a significant role in the agricultural economy.
  • According to data given by the Ministry of Agriculture, it accounts for the expected output of 36.56 mt of nine cultivated oilseeds in the 2020–21 period.
  • India is both the second-largest consumer and top importer of vegetable oil in the world.
  • In India, edible oil demand is currently higher than domestic output. As a result, the nation must rely on imports to bridge the supply-demand gap.
  • Currently, imports help India meet between 55% and 60% of its demand for edible oil. India must be self-sufficient in terms of oil production in order to satisfy domestic demand.
  • Approximately 62% of all imported edible oils are palm oil (crude plus refined), which is primarily imported from Indonesia and Malaysia. Soybean oil (22%) is imported from Argentina and Brazil, and sunflower oil (15%) is primarily imported from Ukraine and Russia.

Oils Frequently Used in India:

  • The most traditionally grown oilseeds in India are castor, linseed, niger seed, rapeseed, mustard, and rapeseed.
  • In recent years, soybean and sunflower have also grown in prominence.
  • Among the plantation crops, coconut is the most significant.
  • The most significant non-conventional oils are cottonseed oil and rice bran oil.
  • Edible oils are imported under an Open General License (OGL), according to the export and import policies.
  • The government periodically examines the edible oil tariff structure in order to balance the interests of producers, processors, and consumers.

What related government initiatives are there?

  • The National Mission on Edible Oils-Oil Palm programme was started by the Indian government and is being carried out jointly by the federal and state governments, with a special emphasis on the Andaman and Nicobar Islands and the northeastern region.
  • By 2025–2026, an additional 6.5 lakh hectares are planned for palm oil production.
  • The Directorate of Sugar & Vegetable Oils under the Department of Food and Public Distribution has developed a web-based platform (evegoils.nic.in) for the monthly online submission of inputs by vegetable oil producers in order to enhance and systematise the data management system in the vegetable oil sector.
  • The web also has a section where users can register online and submit their monthly output returns.


Source: Business Standard

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