The prime Minister of India has revealed the plans of the government to launch a $1.48 billion oilseed production to cut vegetable imports to make the country self-reliant.
Prior to this disclosure, there were reports of the country likely to introduce a five-year plan to cut imports of vegetable oil. This was made known by anonymous government officials who said that a country like India cannot be highly dependent for edible oil and that in the next budget there would be plans to cut this dependency. He said that this will be done by providing farmers with financial incentives to switch to oilseeds from grains.
Being the largest importer of vegetable oil, the country typically imports from producers such as Malaysia, Indonesia Brazil, Argentina and Russia. Currently, India’s levies on edible oil imports ranges between 32.5% for palm oil and 35% for soybean oil. India practically spends an average of $8.5-$10 billion annually on edible oil imports.
In 20 years, the country has increased its import rate from 4 million to 15 million. The growing population of the country makes traders and members of the industry predict the 15 million to grow to 20 million by 2030. The taste of high calorie and fried foods by Indians puts the country at risk as the higher they desire for such, the higher the import rate for vegetable oil can increase.
The country utilizes about 24 million tonnes of edible oil annually. In recent years, India has exported pearls, precious and semi-precious stones and jewellery, mineral fuels, and waxes and bituminous substances, vehicles, parts and accessories, nuclear reactors, boilers, machinery and mechanical appliances. In the midst of all this the country greatly imports vegetable oil.
The country in an attempt to cut this import, has announced its plans towards the $1.48 billion oilseed production. Prime Minister Narendra Modi disclosed on Twitter, “the government will invest more than 110 billion rupees via the National Mission on Oilseeds and Oil Palm to provide farmers everything possible, including better seeds and technology. When India is emerging as a major exporter of farm goods, we should not depend on imports for our edible oil requirements.” The country has been commended for its effort to make the country self-reliant by cutting its import of edible oil. The president of the Solvent Extractors Association of India, Atul Chaturvedi, commended the government and said it was a giant step to help India to become self-sufficient in edible oil.
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