Prime Minister Narendra Modi has emphasized the need for a 10 percent reduction in edible oil consumption to combat obesity. However, this initiative has also brought attention to the country’s heavy reliance on oilseed production.
India’s Dependence on Edible Oil Imports
Despite decades of initiatives, India can only meet 43 percent of its domestic edible oil demand. The remaining 57 percent is fulfilled through imports. To bridge this gap, over 150 lakh tonnes of edible oil is imported annually, making it one of the government’s primary concerns after pulses.
Aiming for Self-Sufficiency in Edible Oil
Recognizing this challenge, the central government has set a goal of self-sufficiency in edible oils, similar to its efforts with pulses. The National Edible Oil Mission is already in progress, aiming to boost oilseed production to cover 72 percent of domestic demand by 2030-31. To achieve this, the government is increasing the cultivation area of oilseeds.
Farmers are being encouraged to grow oilseeds through higher Minimum Support Prices (MSP). Additionally, excessive oil consumption in diets poses health risks. The National Nutrition Institute recommends a daily intake of no more than 27 grams of oil per person, but current consumption levels exceed this, surpassing even many developed nations.
Import Trends of Edible Oils
According to the Ministry of Agriculture and Farmers Welfare, India’s annual edible oil consumption stands at 230 to 250 lakh tonnes, with 140 to 150 lakh tonnes imported every year. In 2023, imports peaked at 165 lakh tonnes.
In the first two months of this year alone, over 20 lakh tonnes of edible oil has been imported. A reduction in consumption by 10 percent could significantly cut imports while improving public health.
The Challenge of Rising Demand
India ranks fifth globally in oilseed production. However, with rising population and income levels, the gap between supply and demand continues to grow. In the 1950s-60s, per capita oil consumption was 2.9 kg per year, which has now surged to 20 kg annually. Among edible oils, mustard oil remains the most preferred.
Expanding Oilseed Production
Mustard, soybean, and sunflower together account for 80 percent of the country’s edible oil consumption. To reduce import dependency, the National Edible Oil Mission is promoting the production of palm oil and other oilseeds. Efforts include providing advanced seeds and technical assistance.
A budget of Rs 10,103 crore has been allocated for the mission over the next six years. Previously, in 2021, Rs 11,040 crore was designated to boost palm oil cultivation. In 2023, India produced 390 lakh tonnes of oilseeds. By 2030-31, this figure is expected to rise to 697 lakh tonnes, meeting 72 percent of domestic needs.
The government’s strategic initiatives in edible oil production are aimed at reducing dependence on imports, ensuring food security, and promoting healthier consumption habits across the nation.
