Edible oil deficit likely to widen

The country's edible oil pool deficit is likely to widen on the back of growing population, rising standard of living, low productivity and increasing dependence on imports.

The per capita consumption of edible oil is at 11 kg, equivalent to a meagre 3 per cent of the total individual expenditure. Of the total consumption of 11 million tonnes, India imports about 5 million tonnes. But, industry stakeholders are hopeful that the country can turn into an exporter if some corrective measures are adopted.

"Exports and imports are two basic needs for any global economy and hence, India should need to export at least a minimum quantity. But a continuity in this effort is needed. Because of discontinuity in output and continual exports, the trust cannot be won on exports front," said an industry expert at the 51st AGM of Indian Oilseeds & Produce Exporters Association (IOPEA).

Industry stakeholders have increased spendings on research and development to increase productivity. The government has shown its keen interest to work towards increasing productivity by using genetically modified (GM) seeds and adopting other mechanised production practices for high quality increased output.

"Self sufficiency without using GM seeds in India is possible if right farm practices are adopted for pre- and post-harvest crop," said Sanjiv Sawla, IOPEA's outgoing chairman. From tilling to sowing, seed selection, pesticides uses, before and after harvesting, milling and packing are some issues the government and the industry should deal with immediately, he added. To achieve this go, educating the farmer is a must, for which IOPEA held several seminars in cities.

India shares the lowest yield of average 800 kg per hectare compared with 1800 kg per hectare globally.

According to Sanjay Shah, the incoming chairman, not less than 15-20 per cent of total crop is lost because of poor handling and improper milling. Hence, this area needs to be addressed immediately, he added. Despite the prices of all edible oils rising 20 per cent this year, it had no major impact on consumer demand, Shah added.

According to the government estimates, the area under kharif oilseeds crop is currently at 172 lakh hectares, an increase of 9 lakh hectares in comparison with 2006-07 but is less by around 2 lakh hectares in comparison with 2005-06.

The area under groundnut has increased by around 6 lakh hectares in comparison with 2006-07 but it is less by 4.5 lakh hectares in comparison with 2005-06. Soybean area has increased by around 6.33 lakh hectares.

During the current kharif season, the total oilseeds output is likely to go up to 155 lakh tonnes compared with 132 lakh tonnes last year. The largest increase is expected to be in groundnut where production may increase by 14 lakh tonnes to 49 lakh tonnes.

The soybean crop may increase by around 9 lakh tonnes to 87 lakh tonnes from 78 lakh tonnes last year.