Edible oils are an important component of the modern diet. Among the three major classes of foods – carbohydrates, protein, and fat, edible oil consist of one of them. These are considered an important source of fat. In general, these are extracted from aquatic or terrestrial animals or the seeds/leaves of a variety of plants.
Most of the oil produced is used for domestic consumption while the rest is used in the food processing & food-service industry. Some of the commonly used edible oils in use are Desi ghee, mustard oil, sunflower oil, olive oil, Rice bran oil, flaxseed oil, groundnut oil, palm oil, sesame oil, almond oil, cashew nut oil, canola oil, soya bean oil, etc.
India has the unique distinction of being the largest importer of edible oil. Indonesia and Malaysia are the major exporters to India. Moreover, India is also the third-largest consumer of edible oil. With steady growth in population, this figure is expected to grow only further. The onset of Covid-19 has completely changed the business dynamics. More and more countries are striving to be self-dependent. India has been no exception with its programs like ‘Vocal for Local’ and ‘Atma Nirbhar Bharat’. Owing to stress on local production many manufacturers & suppliers have ramped up their capacity. The story of edible oil production in India has been a roller coaster ride. Before independence, the country was a net exporter. It floundered in the 1970s and ‘80s to bounce back again in the early ‘90s. Currently, we are the largest importer in the world. The total edible oil requirement in India is estimated at approximately 23 million tons. Out of this, around 70% (15 million tons) is imported from other countries. Your favorite snacks, lunch and dinner have a 70% probability of being made from imported oil.
The total area under oilseed cultivation has stagnated around 15-18 million in the period 1970-85 and then increased to 25 million hectares owing to government technology missions on oilseeds. Oilseeds production saw a jump from 10 million tons to 18 million tons in the same period. Quite admiringly, India was producing 98% of its edible oil requirement indigenously. The period of 1990-94 was the golden period for the edible oil industry. Subsequent years saw a continuous reduction in import duty and adulterated oil being produced indigenously. Such cases seriously damaged the credibility of the domestic oil industry. The area under oilseed cultivation saw a continuous downfall due to farmer apathy and general lack of interest.
At the start of this year, the Indian directorate general of foreign trade had placed palm oil in the restricted list from the free list due to few political controversies. The decision led to some changes since 40% of the palm oil imported to India or 17% of the total edible oil consumed is exported from Malaysia. Price rise in palm oil and other edible oil was the immediate effect of the decision. On the flip side, the cultivation of edible oil became more attractive.
Conclusion: Extra-liberal import policies and dismantling of previous programs may have opened us in the view of the outside world. Opening up has its own benefits for customers. Today, a bulk buyer can buy the best cooking oil online in India on B2B trade-enabling platforms like Tradologie, India Mart & Trade India. However, it may have come at the cost of the rural economy. The thought is open to future debate and analysis.
To get more information on buying/selling edible oil visit to: https://www.tradologie.com/lp/edible-oils.html