As the consumption of edible oils increased, so did its imports by 65%

New Delhi: High edible oil prices during the international oil year 2020-21 (November-October) on the one hand, consumption of edible oils on the other hand, increased consumption of domestic edible oils on the other hand has increased the burden on the exchequer.

Consumption of edible oils has increased in the country and its imports have increased. On the other hand, due to high prices in the global market, the import bill has gone up to Rs. 1.5 lakh crore is expected. Which during the last oil year was Rs. 5,000 crore. In the current year, Rs. 5000 crore import tax was levied.

Imports of all edible oils, including palm, soybean and sunflower, are estimated at around 12.1 million tonnes during the current oil year. Such imports reached an all-time high of 12.1 million tonnes in the 2016-17 oil year.

India's edible oil imports have steadily increased after 15-2. 1.4 million tonnes were imported in 18-2. Which was 3 million tonnes till 2007-08. However, with the increase in the number of middle class people, the demand has also increased steadily.

Production in the country has not increased as compared to the demand for edible oils. Between 2006-07 and 2012-13, production has been between 3 and 4 million tonnes. However, oilseed production is expected to be at an all-time high of 6.5 million tonnes during the 2020-21 crop year.

Rising freight rates are also responsible for the rise in edible oil prices. During mid-June, crude palm oil for delivery in Mumbai rose 6 per cent to 1,000 per tonne. Which was ૬૨૯ 6 during June last year. During the last month, the price had gone up to ૩ 1,308. Mumbai delivery of soybeans also rose by 3% to 115.