The gap between demand and supply of edible oils is around 56% and is met through imports

New Delhi : The Union Minister of State for Consumer Affairs, Food and Public Distribution and Rural Development,  Sadhvi Niranjan Jyoti in a written reply to a question in Lok Sabha today informed that the per capita availability and consumption of edible oil and pulses in the country during each of the last three years and the current year is given below:

 

Year Per Capita Consumption/Availability (Kg/Annum) Edible Oils Per Capita Consumption/Availability (Kg/Annum)

Pulses

2018-19 21.6 17.29
2019-20 19.8 18.31
2020-21 19.7 20.12
2021-22

 

Domestic production of edible oils is unable to meet domestic demand. The gap between demand and supply of edible oils is around 56% and is met through imports. The production of domestic oilseeds has been stagnant since 2010-11. As oilseeds are cultivated on marginal land and largely dependent on rainfall, their production has been stagnant for the last couple of years. However, domestic demand for edible oils has been increasing at a pace faster than that of production due to growth in population and improvement in the living standards of people i.e 10 LMT per annum, hence domestic production is insufficient to meet the demand.

 

The government has undertaken several measures to mitigate rise in prices of essential commodities through adequate availability.

In order to ensure effective intervention for controlling prices, the Government maintains buffer stocks of pulses and onion under the Price Stabilization Fund (PSF). The stocks are utilised to send appropriate market signals, deter speculative/hoarding activities, and for regulated release to cool down their prices.

Further, the Government imposed stock limits on some pulses under the Essential Commodities Act, 1955 in July 2021, which lapsed on 31st October, 2021, and has had a salutary effect in terms of softening of prices.

The details of production, demand, import and prices of edible oils and pulses during the last three years and current year is given below:

 

Oil Year

(Nov-Oct)

Area Under Cultivation of Oil Seeds (lakh Hectares) Production of

oilseeds*  (LMT)

Domestic Availability of

Edible Oils  (LMT)

Imports of Edible Oils** (LMT) Total Availability/ Consumption (LMT) % Share of imports
2017-18 245.0 315 103.8 145.9 249.7 58.4
2018-19 247.9 315 103.5 155.7 259.2 60
2019-20 263.1 332 106.5 134.1 240.71 55.7
2020-21## 288.2 361 111.6 134.5 240.12 56.02
*  Ministry of Agriculture,

**  Directorate General of Commercial Intelligence & Statistics (Ministry of Commerce) ,

## Based on 4th Advance Estimates (declared by Ministry of Agriculture on 11.08.2021).

 

Prices of Edible Oils

Average Retail Price of Edible Oils (Rs/Kg)
Oil Name 2018-19 (Nov to Oct. 2019-20 (Nov to Oct.) 2020-21 (Nov to Oct.)
GROUNDNUT OIL 128 144 171
MUSTARD OIL 109 120 159
VANASPATI 80 89 123
SOYABEAN OIL 92 100 138
SUNFLOWER OIL 99 110 156
PALM OIL 76 89 122

Source- DoCA

 

The details of production, demand, import and prices of Pulses during the three years and the current year is given below:

 

Year

 

Total Production of Pulses (LMT) Imports (LMT) Exports (LMT) Availability/Demand (Production + Imports -Exports) (LMT)
2018-19 220.8 15.40 2.72 233.48
2019-20 230.3 20.56 1.87 249.00
2020-21 257.2 22.70 2.23 277.67
2021-22 94.5* 15.11** 2.27^
* As per 1st Advance Estimates (Kharif only) ** Imports up to 14.11.2021 ^Exports up to 14.11.2021

Source: DAC&FW and D/o Commerce

 

 

Average Retail Price of Pulses (Rs/Kg)
Pulses 2018-19 (April to March) 2019-20 (April to March) 2020-21 (April to March)
Gram dal 65.11 65.92 70.42
Tur Dal 71.17 84.90 99.57
Urad Dal 70.23 83.77 104.49
Moong Dal 74.03 86.27 106.01
Masoor Dal 61.33 64.12 78.04

Source – DoCA

 

In order to improve the domestic availability and to keep prices under control, the Government has been rationalizing the duty structure on edible oils during 2021-22 to reduce the price burden of common man. In the latest notification dated 14.10.2021 the following measures have been taken:

•           In a bid to control the continuous rise in the cooking oil prices since past one year, the Central Government has cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to Nil.

•           The Agri-cess on these Oils has been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil.

•           Consequent upon the above reduction, the total duty is 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil.

•           The basic duty on RBD Palmolein Oil, Refined Soyabean and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5%.

•           Before reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20%. This has been reduced to 7.5% for crude palm oil, 5% each for crude soyabean oil and crude sunflower oil.

•           To control prices of edible oils, futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed.

•           The Government is taking steps to improve the production of secondary edible oils, especially rice bran oil to reduce the import dependence.

•           The Department of Food and Public Distribution has imposed stock limits on Edible Oils and Oilseeds for a period up to 31st March, 2022. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued w.e.f.  8th October, 2021.

Continuing with the proactive measures to augment domestic availability of pulses, changes were made in the import policy as well. Tur, Urad and Moong were shifted from restricted category to free category for the period from 15th May 2021 to 31st October 2021. The time period for free import of Tur and Urad was again extended till 31st December 2021. Basic duty on Masur import has been reduced to zero and Agriculture Infrastructure and Development Cess (AIDC) to 10% to soften the prices of imported Masur on the consumer.

Additionally, 5-year MoUs have been signed with Myanmar for annual import of 2.5 LMT of Urad and 1 LMT of Tur, and with Malawi for annual import of 0.50 LMT of Tur. Further, the MoU with Mozambique for annual import of 2 LMT Tur has been extended for another 5 years.

The Government of India has been implementing a Centrally Sponsored Scheme, National Food Security Mission- Oilseeds & Oil palm (NFSM-OS&OP) from 2018-19 to augment the availability of vegetable oils and to reduce the import of edible oils by increasing the production and productivity of oilseeds and area expansion of Oil Palm & Tree Borne Oilseeds in the country.

Now the Government has launched a separate Mission for Oil Palm, which is the National Mission for Edible Oils (Oil Palm)- NMEO (OP) to promote oil palm cultivation for making the country Aatamnirbhar in edible oils with special focus on North-Eastern States and Andaman and Nicobar Islands. NMEO (OP) has been launched by targeting an additional 6.5 lakh hectare area from 2021-22 to 2025-26.

To incentivize farmers for increasing production of pulses, the Government promulgates appropriate Minimum Support Prices (MSP) and also implements schemes such as National Food Security Mission (NFSM) with the objective of increasing pulses production and productivity.