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Edible Oil and India.
Context:
The report titled “Pathways and Strategies for Accelerating Growth in Edible Oils Towards the Goal of Atmanirbharta” was recently released by the NITI Aayog.
Findings of the Report
- Rising Demand: The report highlights that per capita consumption of edible oil in India has significantly increased to 19.7 kg/year, outpacing domestic production and leading to heavy reliance on imports.
- In 2022-23, India imported 16.5 million tonnes of edible oils, with domestic production meeting only 40-45% of the country’s needs.
- Demand Forecasting Approaches: The report uses three approaches to forecast future edible oil needs:
- Static/Household Approach: Based on population projections and baseline consumption data.
- Normative Approach: Based on recommended healthy intake levels from ICMR-NIN.
- Behavioristic Approach: Accounts for potential behavioural shifts in consumption due to changing lifestyles and income levels.
Edible Oil and India
Edible oil, also known as cooking oil, is a liquid fat derived from plants or animals that is used in various cooking methods such as frying, baking, and sautéing. It plays a crucial role in food preparation, enhancing flavour and texture while allowing for higher cooking temperatures compared to water.
Types of Edible Oils
- Plant-based Oils: These are extracted from seeds, nuts, and fruits. Common examples include: Olive Oil, Sunflower Oil, Soybean Oil, Canola Oil, Palm Oil, Coconut Oil.
- Animal-based Oils: These include fats derived from animal sources, such as: Butter, Lard.
Nutritional Value
Edible oils are rich in various nutrients, including essential fatty acids and fat-soluble vitamins (A, D, E, and K). They are primarily composed of triglycerides, which provide energy and support bodily functions. The health benefits of specific oils can vary based on their fatty acid composition:
- Monounsaturated Fats: Found in olive oil and canola oil, these are considered heart-healthy.
- Polyunsaturated Fats: Present in sunflower and soybean oils, beneficial for lowering bad cholesterol levels.
- Saturated Fats: Found in coconut oil and palm oil, should be consumed in moderation due to potential health risks.
In India
- India is the fourth largest edible oil market in the world after the USA, China, and Brazil, accounting for around 9% of the world’s oilseed production.
- The revenue of the edible oil market in India was worth about $33 billion in 2023 and is projected to increase over the years.
- India imports about half of its edible oil requirement, making it the world’s third-largest importer of edible oil.
- The edible oils market in India is projected to grow by 4.94% from 2024-2029, resulting in a market volume of $44.23 billion in 2029.
- Types of Edible Oils Consumed in India: Groundnut oil, Mustard/rapeseed oil, Sesame oil, Safflower oil ,Linseed oil, Nigerseed/castor oil, Soybean oil, Sunflower oil, Coconut oil, Rice bran oil, Cottonseed oil, Palm oil.
Yellow Revolution
- The Yellow Revolution in India was a significant agricultural initiative launched in 1986-1987 aimed at increasing the production of edible oilseeds, particularly mustard and sesame, to achieve self-sufficiency in edible oils. This movement was spearheaded by Sam Pitroda, who is often referred to as the father of the Yellow Revolution.
National Mission on Edible Oils – Oil Palm (NMEO-OP)
- It is a centrally sponsored initiative launched by the Government of India in August 2021. The mission aims to enhance the domestic production of edible oils, particularly palm oil, to reduce the country’s reliance on imports and achieve self-sufficiency in edible oil production.
- Objectives and Goals
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- Increase Production: The mission targets to triple palm oil production from approximately 3.73 lakh tonnes to 11.20 lakh tonnes by 2025-26, and further to 28 lakh tonnes by 2029-30.
- Cultivation Area Expansion: It aims to expand the area under oil palm cultivation to 10 lakh hectares by 2025-26, with an additional 6.5 lakh hectares targeted initially.
- Focus Regions: The initiative places special emphasis on promoting oil palm cultivation in the Northeastern states and the Andaman and Nicobar Islands.
- Strategic Interventions: The report suggests several interventions to bridge the gap and achieve self-sufficiency in edible oils:
- Crop Retention and Diversification: Focus on retaining and diversifying oilseed crops in regions that could potentially be lost to cereal cultivation, boosting production by 20% in nine states.
- Horizontal Expansion: Increase the area under oilseed cultivation, particularly in rice fallow lands and suitable wastelands for palm cultivation.
- Vertical Expansion: Improve yield through better farming practices, quality seeds, and advanced technologies.
- State-wise Quadrant Approach: The report introduces a “state-wise quadrant approach” to identify clusters of states based on the area and yield of edible oil crops. Tailored interventions are recommended for each cluster to maximise production potential.
- Potential Production Gains: The strategic interventions could significantly increase domestic edible oil production by 43.5 million tonnes, helping bridge the import gap and moving towards self-sufficiency.
- Targeted Interventions:
- Utilise rice fallow areas to add 3.12 million tonnes of oilseed production.
- Bridge the yield gap in crops like sunflower and castor, potentially increasing production by 17.4 million tonnes.
- Expand palm oil production by 34.4 million tonnes, utilising identified suitable areas for cultivation.
- Optimise rice bran and cottonseed utilisation, contributing to a reduction in import dependence.
- Enhancing oilseed development in Bundelkhand and the Indo-Gangetic Plain: Revitalising the Bundelkhand region in Madhya Pradesh and Uttar Pradesh, known for its potential in oilseed cultivation, is essential.
- Cluster-Based Seed Village: Create cluster-based seed hubs at the block level, such as “One Block-One Seed Village,” to provide high-quality seeds for oilseeds, with the goal of improving the seed replacement rate (SRR) and varietal replacement rate (VRR).
- Harnessing Rice Bran Oil for Domestic Blending.
- Promotion of Bio-fortified Oilseed Varieties.
- Supply Projections: The report projects that the strategic interventions could achieve edible oil supplies of 36.2 million tonnes by 2030 and 70.2 million tonnes by 2047, ensuring self-sufficiency except in the most demanding consumption scenarios.
- Seed and Processing Optimisation: The report emphasises optimising seed utilisation and processing capabilities, noting that high-quality seeds could significantly boost production.
