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Govt plans to double edible oil production, reduce import dependence by 2022

25 Sep 2018 Evaluate

In order to double India's edible oil production and reduce import dependence, through expansion in sowing area and yield, the central government has prepared a five-year. At a recent rabi conference, the ministry of agriculture revealed the plan to take annual production to 13.69 million tonnes (MT) by 2022, as against 7.31 MT current production. Numerous such roadmaps were drawn in the past, too, but the momentum did not continue.

Sustained increase in consumption against stagnating production widened India’s import dependence to 67% for 2016-17, with an estimated demand of 24.5 MT. Total vegetable oil import was around 14 MT, worth Rs 730 billion, during oil year (October 1 to September 30) 2016-17. This was 67% of the 24.5 MT consumption. Annual cultivation was on about 26.7 million hectares, around 70% of which was rain-fed. The area has seen a deceleration in general due to relatively lower profitability as against competing crops like maize, cotton or chickpea.

Total vegetable oil requirement by 2022 is estimated at 33.2 MT, assuming per capita consumption of about 22 kg per person a year, from 19 kg during 2015-16. Of the increased consumption, the government aims to meet half from domestic sources. The Solvent Extractors' Association said this is possible through horizontal and vertical growth in production to achieve doubling of farmers' income by 2022. This means the area under oilseed production and yield should go up through changes in farm practices, including advanced seeds and farm mechanisation.

To achieve this, the government has proposed certain measures, besides incentives to farmers under various agricultural missions. Considering an increased availability of vegetable oil from secondary sources, viz coconut, cottonseed, rice bran and others of forest origin, to 5.22 MT by 2022, from 3.58 MT now, total availability from domestic sources is estimated at 17 MT by then. With this, India's import dependence is set to decline by 15% by 2022, from the existing 67%, and the import burden of Rs 150 billion is also set to decline in the coming four years.

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