A rising spectre of edible oil imports

About 60% of India's requirements may be met through imports by 2015.

If the oilseeds production in the country does not increase substantially, import of edible oils is likely to rise to over 60 per cent of the total requirements by 2015. The country currently imports 40 per cent of its edible oil requirements.

"The problem of over-dependence on imported edible oil has already assumed a gigantic proportion. Compare the current figure with that of 1992, when only 3 per cent of the country's requirements were imported," said Davish Jain, chairman, Central Organisation for Oil Industry and Trade (COOIT).

According to him, the problem of low production of oilseeds could be overcome by encouraging genetically modified oilseeds.

Stagnant production of oilseeds for over a decade and rising international prices of edible oils had caused serious concern and consternation in the edible oils industry, Jain added.

The apex body of the entire vegetable oils and oilseeds sector has suggested several measures to be initiated immediately to check the falling domestic production.

As the area under cultivation is limited and each crop fights for acreage, the only way to increase oilseeds production is to increase yields. Indian oilseed yields are less than half the world average and less than one-third of the best yields in the world. The fund allocation for oilseeds cultivation is too low and scattered widely among various agencies involved in this work.

There is an urgent need for a well coordinated and time-bound action-oriented government programme to overcome the grim situation. Without the timely action, the situation would be worse in the coming years, seriously jeopardising India's food security, said Jain.

In addition to increasing the oilseeds productivity, Jain also suggested that oil palm plantation should be encouraged in a big way by allowing the corporate sector to invest in the segment. Small farmers cannot afford to invest in oil palm because of the long gestation before the plants start bearing fruits.

Jain said that it was high time the government encouraged the use of genetically modified oilseeds that were responsible for a phenomenal growth of soybean production.

Over the years, farmers have switched to other remunerative crops resulting in an overall decline in acreage of oilseeds and, therefore, the fall in output.

The frequent duty cut has also discouraged farmers from sowing oilseeds. This year, sowing has gone up by 30 per cent till the first week of July to 42.3 lakh hectares this kharif season against 32.6 lakh hectares during the same time last year.

According to the Solvent Extractors Association (SEA), the total import of edible oils between November and June (2006-2007) wad 27.48 lakh tonnes, up 6.2 per cent over the corresponding figure of 25.88 lakh tonnes in 2005-06.

According to the fourth advance estimates, oilseeds output in 2006-07 is estimated at 23.88 million tonnes, down 14.65 per cent from the final production estimates of 27.98 million tonnes in 2005-06.