India will spend $1.2 billion in the coming years to reduce edible oils imports

India will spend 101 billion rupees ($1.2 billion) over the next seven years to reduce its dependence on imports of vegetable oils, according to the national news agency of Malaysia.

The Indian government on Thursday approved an initiative called the National Edible Oils Mission – Oilseeds to increase domestic production of oilseeds from 39 million tons in MY 2022/23 to 69.7 million tons by MY 2030/31.

India, the world’s largest importer of vegetable oil, buys most of its palm oil from Indonesia and Malaysia, while Argentina, Brazil, Ukraine and Russia supply it with soybean and sunflower oil.

In 2022-2023, India imported 16.5 million tons of edible oils, while domestic production covered 40-45% of its total needs. Of the 27.2 mln tons of oils and fats consumed in 2023, 36% were palm oil.

In 2021, India launched the National Edible Oil Mission – Oil Palm to expand local oil palm cultivation. The new initiative, along with the palm oil mission, aims to increase domestic edible oil production to 25.45 million tons by MY 2030/31, which will cover about 72% of the country’s projected demand.

According to a government statement, India aims to expand oilseeds by another 4 million hectares by utilizing fallow land for rice and potatoes, as well as promoting crop intercropping and diversification.

Last month, India increased import duties on palm oil and other edible oils by 20%, which is believed to help local oilseed producers.

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Tags: sunflower oil, subsidies, soybean oil, India, palm oil, edible oils, restrictions