India has become the largest importer of edible oil. The country imported around 11.8 million tonnes of edible oil from October 2013 to November 2014, a record in itself, according to industry sources.

This year, unfavourable weather conditions ensured a 26 per cent increase in edible oil import in November itself. Market sources state that imports are expected to further increase to an all-time high to 13 million tonnes of edible oils for the year that started from November 2014.

Commenting on the escalating situation, Managing Director of Puri Oil Mills, Vivek Puri said that India needs to take a leaf from countries like Malaysia and Italy, who have managed to sell their edible oil worldwide, in a decision that has helped contribute to their economy.

Alarming dependency

In a statement, he added that the nation’s dependency on imported oil is expected to reach alarming levels up to 60-65 per cent.

“The Centre should formulate encouraging policies like Malaysia and Italy for edible oil so that farmers, consumers and manufacturers can benefit from it,” he said.

Commenting on the increase in edible oil imports, Puri added in the statement, “Oilseed production does not get appropriate incentives and encouragement. Due to the free trade agreement with ASEAN countries, there is a huge influx of palmolive and soybean oil from countries like Malaysia and Indonesia in the Indian market at very low prices.”

Stating that there has been a huge increase in the production of oilseeds and edible oil in the international market as well, Puri added that this has resulted in a sharp decline in international edible oil prices.

Reduction in Rabi

He added that due to El Nino, the sowing of Rabi crops has drastically decreased.

According to latest data, about 511 million hectares has Rabi sowing, 5 per cent lower than the previous year.

Mustard oilseeds sowing acreage has also decreased by about 5-7 per cent.

Puri added that the new technology and the use of high yielding varieties could give a fresh boost to the country’s farming system, as well as the indigenous edible oil Industry.

He added that increasing domestic oilseed production should be linked to the food security programme.

The official said that the edible oil industry has also requested the Centre to establish a ‘Mustard Oil Development Board’ for the integrated development of the mustard oil industry in the country, to enable higher productivity and value addition.

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