Edible oil imports may dip 3% by 2015

India's import dependence on edible oil is likely to decline 3 per cent to 39 per cent of the country's total demand of 21.3 million tonnes by 2015.

Currently, the country imports 12.0 million tonnes. By 2010, the demand estimated at 15.6 million tonnes, however, is projected to contribute 38 per cent, said a paper presented by the Solvent Extractors' Association (SEA) of India executive director B V Mehta.

Total edible oil imports in the country stood at 5.0 million tonnes in 2006 but is likely to surge to 5.9 million tonnes in 2010 and 8.3 million tonnes in 2015.

India's edible oil demand is likely to increase 30 per cent to 15.6 million tonnes by 2010 and 77 per cent to 21.3 million tonnes by 2015. But, a marginal 7.7 per cent increase by 2010 and 23 per cent by 2015 in acreage area under oilseeds is expected to contribute phenomenally to the total output thereby, reducing the dependence on imports.

Simultaneously, the introduction of innovative and modern technology is expected to help increase yield of oilseeds in the country to 1.2 tonnes per hectare by 2010 and further to 1.4 tonnes by 2015 from the current level of 0.97 tonnes in 2006.

So, the total oilseed production should increase substantially to 33.6 million tonnes and 44.8 million tonnes respectively by 2010 and 2015 from the present level at 23.2 million tonnes.

Higher seed output would help mills crush more in the years ahead to produce total edible oil of 10.1 million tonnes by 2010 and 13.4 million tonnes by 2015 from the present level of 8.0 million tonnes.

Reflecting changes in the economic environment, the vegetable oil complex, representing a significant part of agribusiness in India has witnessed considerable changes in business conditions in recent years in the wake of economic liberalisation, the paper said.

The size of the Indian oilseeds-based sector is estimated at $16.5 billion (inclusive of exports and imports). India is the world's fourth largest vegetable oil economy. The industry comprises 15,000 oil mills, 600 solvent extraction units, 250 vanaspati (hydrogenated oil) plants, and over 600 refineries, employing over one million persons. Currently, India accounts for 7.4 per cent of world oilseeds output; 6.1 per cent of world oilmeal production; 3.9 per cent of world oilmeal export and 5.8 per cent of world vegoil production.