New Delhi: In its latest report, Niti Aayog has made several recommendations to become self-sufficient in edible oil, such as ensuring the purchase of oilseeds at the minimum support price, increasing the duty on the import of edible oil, increasing the area for the production of oilseeds and developing one village in every block as an oilseed seed village for the availability of oilseed seeds.

The Commission has also recommended giving incentives to the food industries for the use of domestic edible oil and also collaborating with the private sector to increase the production of oil. This recommendation of the Commission is considered important because for the last 20 years India has been struggling to become self-sufficient in terms of edible oil, but imports are not decreasing. In the year 2022-23, India imported 165 lakh tonnes of edible oil. Only 40-45 percent of the needs are met by the production of edible oil at the domestic level.

We have to import to meet 60 percent of our needs. By becoming self-sufficient in edible oil or reducing this import, our import bill will also be reduced. In the last financial year 2023-24, India spent Rs 1,23078 crore on the import of edible oil. According to NITI Aayog, the per capita consumption of edible oil in India is currently 19.7 kg per year, whereas in developed countries this consumption per capita is 25.3 kg. With the development of the country, per capita consumption in India can also reach this level and then the gap between domestic demand and supply of edible oil can go up to 223 lakh tonnes by the year 2030.

Meaning, if domestic production is not increased, we may have to import 220 lakh tonnes by the year 2030 and if India's per capita consumption of edible oil becomes 40.3 kg like America, then we will have to import 295 lakh tonnes of edible oil by the year 2030. In such a situation, to reduce this gap between demand and supply, there is a need to start cultivation of oilseeds in those parts of the country where this cultivation is not done till now.

This farming can be done on a large scale in areas like Bundelkhand. Currently, oilseed farming is mainly done in states like Andhra Pradesh, Gujarat, Haryana, Rajasthan, Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu and Maharashtra. The commission has also asked to increase the area of ​​palm oil cultivation. Palm oil has a major share in the import of edible oil.

The government is also unable to increase the duty on the import of edible oil because doing so increases the retail price of edible oil, which affects inflation. By increasing the import duty, domestic farmers will get a good price and they will be attracted to produce more oilseeds.