Emphasis on increasing the production of oilseeds and reducing the import of edible oil in the pre-budget memorandum of 'C'
21-Jan-2025 08:41 PM
The Solvent Extractors Association of India (SEA), a prominent body in the country's oilseed-oil industry, has urged the government to prioritize the strengthening of the domestic oilseed sector in its pre-budget memorandum for the financial year 2025-26. The memorandum highlights several key recommendations aimed at boosting domestic oilseed production and reducing India’s reliance on imported edible oils.
Key Recommendations:
Increase Domestic Oilseed Production: SEA emphasizes the need to enhance both the average yield rate and overall production of oilseeds in India. The current production of oilseeds stands at about 350 lakh tonnes with an average yield of 900-1000 kg per hectare, which has remained largely stagnant over the years despite growing demand.
Reduction in Edible Oil Imports: India currently imports about 160 lakh tonnes of edible oils annually, costing around Rs 1.40 lakh crore. This accounts for nearly 60% of the country's edible oil consumption. SEA advocates for the reduction of this dependence by promoting domestic oilseed production and improving yield rates.
Implementation of the National Mission on Edible Oil: SEA calls for the serious implementation of the 'National Mission on Edible Oil' and proposes an allocation of Rs 25,000 crore over the next five years to support the mission. This initiative aims to reduce India’s edible oil import dependency from the current 60% to around 25-30% by 2029-30.
Curbing Refined Edible Oil Imports: The association has also suggested curbing the import of refined edible oils, which will encourage the growth of domestic oil mills and oil extraction industries.
The memorandum underscores the importance of achieving self-sufficiency in the oilseed sector to ensure food security, create employment opportunities, and reduce the financial strain caused by high imports.