CACP stresses the need to reduce dependence on import of edible oils and pulses

17-Oct-2024 06:08 PM

New Delhi. In its recommendation (report) for the upcoming Rabi Marketing Season 2025-26, the Commission for Agricultural Costs and Prices (CACP) has stressed the need to reduce dependence on import of edible oils and pulses,

suggesting to increase its domestic production and strengthen the procurement process. The Commission has also advised to implement a dynamic duty structure on edible oils to ensure protection to indigenous oilseed producers from cheap imports.

The Commission's report states that due to increase in population, increase in income of people and change in food style, there is a continuous increase in the demand and consumption of edible oils and due to lack of increase in production accordingly, imports are increasing.

There is a huge fluctuation in the global market of vegetable oils, which affects Indian producers and processors, hence there is a dire need to reduce dependence on imports.

According to the report, indigenous farmers should be given proper incentives to increase the production of pulses and oilseeds and should be protected from the impact of cheap imports.

For this, the structure of import duty should be created on the basis of the minimum support price (MSP) of oilseeds, domestic and global market prices of edible oils and the equation of demand and supply.

It is necessary to ensure that the cost of imported edible oils does not remain below the prevailing price in the domestic market.

During the financial year 2023-24, the share of edible oils in the total import of agricultural products in India was 42.3 percent and its share in gross imports was 2.2 percent.

This clearly indicates that the import of edible oils is increasing excessively and there is a dire need to control it. More than 55 percent of the demand for edible oils in the country is met through imports from abroad.

Import of edible oils jumped from 84 lakh tonnes in 2021-22 to 155 lakh tonnes in 2023-24. Like edible oils, the import of pulses is also increasing rapidly.

The government has set a target to make the country self-sufficient in pulses production by the year 2027, therefore control on import has become necessary.