Edible oil deficit likely to widen to 81 LT by 2020

The gap between demand and supply of edible oils is expected to widen to over 81 lakh tones in the country by 2020 from the present 47.1 lakh tones as its consumption is increasing at a brisk pace, says a study.

The situation might aggravate further if the country fails to maintain the growth in domestic vegetable oil production, the study by Assocham said.

The study said edible oil consumption in the country has increased at a brisk pace over the years with growing population and increase in per capita consumption.

Change in eating habits with increase in income, per capita consumption of edible oils has increased by 2.23 per cent to 10.23 kg per year in  2007-08 from 6.43 kg/yr in 1986-87, it said.

It said India is likely to remain dependent on imports as production growth is not sufficient to bridge this gap.

"Limited scope for expansion in acreage remains one of the major hindrances for increasing production of vegetable oils," Assocham President Sajjan Jindal said.

Nearly 40-50 per cent of domestic edible oil consumption of is met through imports of soyabean and palm group of oils.

In July, the vegetable oil import rose marginally by four per cent to 5.96 lakh tonnes from 5.71 lakh tonnes in the year-ago period, according to industry data.

Lack of increase in irrigation facilities is keeping acreage of mustard, a rabi crop, almost stagnant while lower profits in oilseeds for the farmers due to poor yields hinders expansion in its acreage, the study said.

"The focus of green revolution was mainly on the grains, which resulted in neglect of oilseeds leading to slower growth in their yields," it said.