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Why in News:
- India’s edible oil imports reached a record 16.5 million tonnes in the year ending October 2023.
- Despite higher volumes, the value of imports decreased due to a global price drop.
Trend Over a Decade:
- Over the past 10 years, imports have risen from 11.6 million tonnes to 16.5 million tonnes.
- This increase is more pronounced in the last three years.
- Domestic production of edible oils was around 10.3 million tonnes in 2022-23.
- The self-sufficiency ratio has dropped significantly compared to 2004-05.
Oil Production and Imports:
- Major contributors to India’s edible oil production include mustard, soybean, cottonseed, and rice bran.
- Genetically modified (GM) Bt technology has boosted cottonseed oil production. However, recent declines in cotton output have affected its oil production.
- Major imports include palm oil (mainly from Indonesia, Malaysia, and Thailand), soybean oil (from Argentina and Brazil), and sunflower oil (from Russia, Ukraine, and Argentina).
Vulnerability to Global Market
- High import dependence exposes India to international price fluctuations.
- Edible oil prices in India are closely linked to global market trends.
- The Russia-Ukraine conflict significantly impacted global edible oil prices.
- This led to a reduction in retail edible oil inflation in India.
Way forward:
- Adoption of GM technology for increasing domestic edible oil production and government support for oilseed growers are suggested measures.
