Import dependence

Crop diversification can improve edible oil production

India is a significant producer of edible oil, accounting for 15-20 per cent of the global oilseed area, 6-7 per cent of production, and 9-10 per cent of consumption. Yet, about 57 per cent of India's edible oil consumption is met through imports, rendering it vulnerable to global price fluctuations and supply disruption. In fact, India bought a record amount of edible oil in July this year, as refiners increased palm oil and soy oil purchases due to lucrative prices. In this regard, the NITI Aayog recently brought out a comprehensive report detailing India's heavy reliance on oilseed import and outlook for the future. In 2022-23, for instance, India imported 16.5 million tonnes (mt) of edible oil, with domestic production fulfilling only 40-45 per cent of the country's requirements. While the per capita consumption of edible oil in the country rose to 19.7 kg per year, self-sufficiency in oilseeds, attained through the Yellow Revolution during the early 1990s, could not be sustained for long.