India’s Rising Concerns Over Edible Oil Imports

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.