New Delhi, Sept 5 (KNN) As a result of the improvement of oilseeds production and because of the increased yield, the edible oil production is likely to shoot up to 11 million tonnes by 2021-22, however considering the projected demand, the production is still less and the country will have to rely on exports as well, investment information and credit rating agency ICRA said in a report.

Aligned with the output, the demand is also expected to increase from 24 million tonnes to 29 million tonnes In the FY22, following which there would be a need of an increased import.

Citing figures ICRA said that at present the import figure is restricted to 14 million tonnes, which is likely to shoot up to 16 million tonnes by the financial year 2022.

The report further informed that the proportion of import in total consumption is likely to reduce to 55 per cent from the current 60 per cent.

ICRA explained that despite the push to the sector through various schemes of the government, the projected increase is still a lot less than the actual requirement of the country.

Listing reasons ICRA said that the limitations in the availability of good quality seeds, lack of proper infrastructure and fewer incentives for the sector are responsible for the setback in production.

ICRA asserted that the government must take into account the needs of the sector and also facilitate a proper seed supply chain mechanism along with appropriate assistance in order to produce more and rely less on the imports. (KNN/ DA)