India’s Edible Oil Position Is Comfortable Despite Ban By Indonesia
New Delhi: India has optimum stock of all Edible Oils. As per the industry sources, the present stock of all edible oils in the country is 21 LMT approx. and 12 LMT approx. is in transit arriving in May, 2022. Therefore, the country has sufficient to cover the lean period due to ban on export by Indonesia.
On the oilseeds front, DA&FW’s second advance estimate released in February, 2022 shows a very positive picture of Soyabean production for the year 20221-22 at 126.10 LMT which is higher than last year’s production of 112 LMT. As a result of higher sowing of Mustard seeds by 37% in all major producing States including Rajasthan in comparison with last year, the production may rise to 114 LMT in 2021-22 season.
The Department of Food and Public Distribution is monitoring the price and availability situation and meetings are held regularly with major Edible Oil processing Associations to discuss further reduction in the domestic edible oil prices and MRP to give relief to consumers.
Palm oil (Crude + Refined) constitutes roughly around 62% of the total edible oils imported and are imported mainly from Indonesia and Malaysia, while Soyabean oil (22%) is imported from Argentina and Brazil and Sunflower oil (15%) is imported mainly from Ukraine and Russia.
International prices of Edible Oils are under pressure due to shortfall in global production and increase in export tax/levies by the exporting countries. India is one of the largest producers of oilseeds in the world and this sector occupies an important position in the agricultural economy, accounting for the estimated production of 37.14 million tons of nine cultivated oilseeds during the year 2021-22 as per the 2nd Advance Estimates released by the Department of Agriculture and Farmers Welfare.
A close watch is being kept on day to day basis on prices of Edible oils so that appropriate measures can be taken to keep a check on the prices of edible oil for ensuring that the prices remain stable and interest of consumers are protected. The Inter-Ministerial Committee held weekly on Agri-Commodities chaired by Secretary (Food) closely monitors the prices and availability of agricultural commodities including edible oil keeping in view the interest of the farmers, industry and consumers. The committee reviews price situation on weekly basis, consider relevant measures in relation to edible oils and other food items depending on the domestic production, demand, domestic and international prices and international trade volumes. Special teams have also been constituted by both Central & State Governments to prevent hoarding and profiteering under the Essential Commodities Act. These surprise checks shall continue to check unscrupulous elements.