EDIBLE OIL (Syllabus: GS Paper 3 – ECONOMY)

Context: India could soon see record imports of edible oil of over 16 to 16.5 million tonnes this year due to low rainfall in the month of August, along with other factors, is driving the high demand.

• Data released on September 2023, showed the import of edible oil in August 2023 was 35 percent higher than imports in August 2022.

Edible Oil

• About: Oilseeds and edible oils rank among the most highly sensitive essential commodities.
• Largest Consumer: India holds the distinction of being the globe's second-largest consumer and foremost importer of vegetable oil.
• Popular Edible Oils in India: Palm oil, soya bean oil, sunflower oil, and mustard oil.
• India's Diverse Oilseed Production: Rapeseeds, soybeans, peanuts, groundnuts, copra, cottonseeds, and sunflower seeds.
• Import Dependency: Currently, India satisfies roughly 55% to 60% of its edible oil demand through imports.
• Soybean Oil Importation: Soybean oil accounts for 22% of imports and primarily originates from Argentina and Brazil.
• Sunflower Oil Imports: Sunflower oil, comprising 15% of imports, is predominantly sourced from Ukraine and Russia.