Huge imports of edible oils likely to continue to meet growing domestic demand
22-Jul-2024 06:12 PM
New Delhi. Due to the increasing population and per capita income and the changing food habits of people, the demand and consumption of edible oils in the country is increasing rapidly, while the domestic production is not increasing accordingly.
In view of this, it is likely that imports of edible oils from abroad in large quantities will continue in the future as well.
An experienced industry analyst and CEO of Sunvin Group says that India can only try to keep the imports of edible oils stable at the current level because the growth rate of its consumption will remain higher than its domestic production till the year 2030.
It seems difficult to see a major decline in the imports of edible oils and in such a situation, the most that can be done is to ensure that the imports do not increase much. If success is achieved in keeping the imports stable around the current level in the coming years as well, then it will be a very good thing.
The annual import of edible oils in India has now increased to around 160 lakh tonnes. According to the analyst, the annual consumption of edible oils in the country is expected to increase to 290 lakh tonnes by the year 2030, while by that time its domestic production is likely to reach only 120 lakh tonnes in the next five years.
This may further increase dependence on imports. According to the CEO of Sunvin, by September 2024, the futures price of crude palm oil (CPO) in Malaysia is likely to be between 3750-4100 ringgit per tonne and the futures price of soybean oil in Chicago Exchange is likely to be between 43.50/47.50 cents per pound.
The use of edible oils in biodiesel production is increasing continuously globally. During the current year, 20.25 crore tonnes of edible oil is expected to be produced globally, 31 percent of which can be used in the production of biofuel.
Another analyst has urged the government to lift the ban on futures trading in oilseeds-oil as soon as possible.
It is known that in the year 2021, SEBI had imposed a ban on wheat, gram, mustard, crude palm oil, moong, basmati paddy and soybean and its products for one year, which was later extended till 20 December 2024.