10 lakh tonne drop possible in import of edible oils

11-Nov-2024 08:54 PM

The potential reduction in India's edible oil imports for the 2024-25 season is driven by expectations of higher domestic production of oilseeds. The Solvent Extractors Association of India has projected that total imports may fall to around 150 lakh tonnes, down by 10-15 lakh tonnes from previous years (160 lakh tonnes in 2023-24 and 165 lakh tonnes in 2022-23). This decrease is attributed to an anticipated increase in domestic oilseed production, with a focus on major crops like soybean, groundnut, and mustard.

Key points:

• Soybean production is expected to rise by 3 lakh tonnes (about 2.2%), reaching 133.6 lakh tonnes in 2024-25.
• Groundnut production is projected to increase by 17 lakh tonnes, from 86.6 lakh tonnes to 103.6 lakh tonnes.
• Mustard production could also rise if sowing conditions improve and favorable weather patterns prevail.

In addition to these crops, India produces edible oils from other sources like rice bran, cottonseed, and oil palm, which contribute to domestic production. Currently, India's annual edible oil production stands at 127 lakh tonnes, but consumption is significantly higher at over 290 lakh tonnes annually, leading to reliance on imports for the shortfall.

Overall, while the country is poised to reduce its dependence on edible oil imports due to higher domestic production, there will still be a gap between production and consumption, necessitating continued imports.