India’s import reliance for edible oils is likely to rise further by 3.17 per cent this oil year (November - October) on stagnant domestic production and increasing local demand.
Over the years, the country’s import reliance has risen to an alarming 40 per cent during the oil year 2007-08 compared to a paltry 3 per cent in 1992-93. During the period, the consumption more than doubled to around 13 million tonnes while the domestic production remained virtually unchanged around 6.5 million tonnes.
According to an estimate by the Solvent Extractors’ Association (SEA), vegetable oil imports into the country may rise 3.17 per cent to 6.5 million tonnes this year compared to last year.
Estimating the total oilseed output in the recently-ended kharif season at 16.5 million tonnes and forecast of rabi oilseed production at 10 million tonnes, the SEA sees hardly any rise in output during the last five years. The acreage during the ongoing rabi oilseed crop has risen to 8.375 million hectares (ha) from 7.7 million ha last year as of now.
Industry sources highlighted an urgent need to increase oilseed productivity using modern farm techniques at least to 100 kg per ha per annum for the next five years. India’s productivity of oilseeds has currently hovering around 950-970 kgs per ha which is almost half the world average or one-third of the highest in the world. Hence, a wide room exists to raise the output without increasing the sowing area.
“Import reliance of 40 per cent and beyond is alarming. Therefore, we need to do something urgently to raise productivity sustainably to 80-85 per cent. Otherwise, exporters including Indonesia, Malaysia and Argentina would continue to rule the edible oil markets in India,” an analyst said.
The country needs groundnut and rapeseed production each at 10 million tonnes coupled with soybean and cottonseed each at 13 million tonnes to reduce dependence on import of vegetable oils to the expected extent.
