Though India’s edible oil imports fell and domestic availability increased during the financial year 2020-21, the import bill also went up. At the same time, domestic edible oil production increased to fill in for the drop in imports not just last fiscal but in the previous two as well.
Considering the increase in demand for edible oils in the country and India’s dependence on imports, prices rose during January to December of 2021.
The Centre shared these details during question hour in the Lok Sabha on Wednesday.
Replying to a query, Piyush Goyal, Union Minister for Commerce and Industry, said India is the world’s largest importer of palm oil.
India imported 13.54 million tonnes (mt) of edible oils during the financial year 2020-21, as against 14.72 mt in 2019-20.
The import bill for palm oil, a major edible oil used in the country, from Indonesia and Malaysia increased to $5.46 billion in 2020-21, against $4.7 billion in 2019-20.
Goyal said India imported 4.25 mt of palm oil (which includes crude palm oil and RBD palmolein), valued at $3.19 billion, from Indonesia; and 2.86 mt, valued at $2.27 billion, from Malaysia during 2020-21. In 2019-20, it imported 4.72 mt of palm oil, valued at $2.83 billion, from Indonesia; and 3.34 mt, valued at $1.87 billion, from Malaysia.
Quoting data from the Commerce Department, Sadhvi Niranjan Jyoti, Union Minister of State for Consumer Affairs, Food and Public Distribution, said in a separate reply in the Lok Sabha that the domestic availability of edible oils has gone up from 10.65 mt in 2019-20 to 11.15 mt in 2020-21.
She said the country imported 1.74 mt of edible oil from Ukraine and 0.34 mt from Russia during 2020-21. India had imported 1.97 mt of edible oil from Ukraine and 0.38 mt from Russia in 2019-20. Currently at war with each other, Russia and Ukraine are major producers of sunflower oil (another major edible oil used in India).
On the impact of the war on Indian edible oil imports, she said the import is under open general licence. Private industry imports the required quantities The Government has held meetings with the industry and edible oil associations for facilitating imports.
Price rise
On the increase in the prices of edible oil, Jyoti said prices of essential commodities, including edible oils, are impacted by various factors such as the gap between demand and supply, weather conditions, logistics issues, international prices, and so on.
Domestic production of edible oils is unable to meet domestic demand. The demand-supply gap is around 56 per cent, and met through imports. The increase in international prices of edible oils has affected domestic prices.
The average retail price of palm oil increased to ₹128.28 a kg during calendar year 2021, against ₹92.14 a kg in 2020; sunflower oil ₹164.36 (₹114.23); soyabean oil ₹147.26 (₹102.76); mustard oil ₹170.67 (₹123.34); and groundnut oil ₹176.28 (₹147).