India Has Sufficient Edible Oil to Tide Over Indonesian Crisis, Says Government

Despite Indonesia's restriction on the export of palm oil, the government has stated that the country has an adequate supply of edible oils.

According to the Ministry of Consumer Affairs, the current supply of all edible oils in the nation is roughly 21 LMT (lakh metric tonne), with another 12 LMT in route and expected to arrive in the country in May 2022.

On the oilseeds front, the Department of Agriculture and Farmers Welfare's second advance estimate, issued in February 2022, indicates a good picture of soyabean output for the year 2021−22 at 126.10 LMT, up from 112 LMT last year, according to the ministry.

Mustard seed sowing increased by 37% in all main producing states, including Rajasthan, in comparison to previous year, raising production to 114 LMT in the 2021−22 season.

The Department of Food and Public Distribution is monitoring the pricing and availability situation, and meetings with key edible oil processing organisations are held on a regular basis to consider additional reductions in domestic edible oil prices to provide relief to consumers.

According to the ministry, palm oil accounts for around 62% of total edible oil imports and is mostly imported from Indonesia and Malaysia, while soyabean oil (22% is supplied from Argentina and Brazil) and sunflower oil (15%) is imported primarily from Ukraine and Russia.

International edible oil prices are now under pressure due to a global production shortage and an increase in export taxes or levies imposed by exporting countries.

According to the second advance estimate released by the Department of Agriculture and Farmers Welfare, India is one of the world's largest producers of oilseeds, and this sector plays an important role in the agricultural economy, accounting for the estimated production of 37.14 million tonnes of nine cultivated oilseeds during the year 2021−22.

A close eye is kept on the prices of edible oils on a daily basis so that suitable actions may be made to keep a check on the prices of edible oil to ensure that prices stay constant and consumer interests are safeguarded.

Under the Essential Commodities Act, both the Central and State Governments have formed special teams to combat stockpiling and profiteering.