Import bill of edible oil may reach USD 14 billion
Updated: Jun 13, 2014 02:34:05pm
New Delhi, Jun 13 (KNN) India’s import bill of edible oil is likely to shoot up to USD 14 billion in the current financial year from USD 9.3 billion in 2013-14 as production of oilseeds would be hit to be extent of at least 8 to 10 per cent due to deficient monsoon rains as predicted this season, said the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“The demand of edible oil will continue to grow by 15 per cent per annum due to increasing income levels and fast changing eating habits in rural India. The demand for edible oil is likely to touch 203.54 Lakh MT during 2014-15. Import bill is also likely to touch around US D14 billion, result in hike of domestic prices if adequate and timely corrective measures were not taken,” said the chamber Secretary General DS Rawat while releasing a study.
According to its paper on “India’s likely tryst with Edible Oil: Impact of El Nino factor”, the rainfall in the edible oil growing states of Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu, West Bengal and Andhra Pradesh would be deficient due to “El Nino factor” hitting the output which in turn will result in higher import dependence on the edible oil.
It said the country imported edible oils worth USD9.3 billion during the 2013-14 fiscal, a fall from USD11.2 billion during 2012-13. Despite increase in production of edible oils in the country, close to half of its domestic requirements are being met by imports.
Rawat said that India faces drought prospects every fifth year, the last one being in 2009, indicating a possible drought in 2014 in areas potentially receiving less than 10 per cent rainfall.
Typically, El Nino conditions lead to either delay in the arrival of monsoons or deficient rainfall in the beginning of kharif season (June-September). India has been heavily dependent on imports for vegetable oils and pulses.
India’s oilseed processing sector has been plagued by a slew of technological and policy issues culminating in the existence of a processing sector low in efficiency and capacity utilization. If the oilseed cultivators have to be linked in an economically viable and sustainable manner to the oilseed value chain, the role of oilseed processing units cannot be underestimated. The Indian oilseeds processing sector is fragmented, small-scale and suffers from low capacity utilization, added the paper. (KNN/ST)
“The demand of edible oil will continue to grow by 15 per cent per annum due to increasing income levels and fast changing eating habits in rural India. The demand for edible oil is likely to touch 203.54 Lakh MT during 2014-15. Import bill is also likely to touch around US D14 billion, result in hike of domestic prices if adequate and timely corrective measures were not taken,” said the chamber Secretary General DS Rawat while releasing a study.
According to its paper on “India’s likely tryst with Edible Oil: Impact of El Nino factor”, the rainfall in the edible oil growing states of Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu, West Bengal and Andhra Pradesh would be deficient due to “El Nino factor” hitting the output which in turn will result in higher import dependence on the edible oil.
It said the country imported edible oils worth USD9.3 billion during the 2013-14 fiscal, a fall from USD11.2 billion during 2012-13. Despite increase in production of edible oils in the country, close to half of its domestic requirements are being met by imports.
Rawat said that India faces drought prospects every fifth year, the last one being in 2009, indicating a possible drought in 2014 in areas potentially receiving less than 10 per cent rainfall.
Typically, El Nino conditions lead to either delay in the arrival of monsoons or deficient rainfall in the beginning of kharif season (June-September). India has been heavily dependent on imports for vegetable oils and pulses.
India’s oilseed processing sector has been plagued by a slew of technological and policy issues culminating in the existence of a processing sector low in efficiency and capacity utilization. If the oilseed cultivators have to be linked in an economically viable and sustainable manner to the oilseed value chain, the role of oilseed processing units cannot be underestimated. The Indian oilseeds processing sector is fragmented, small-scale and suffers from low capacity utilization, added the paper. (KNN/ST)
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