Recent Demand-Supply and Growth of Oilseeds and Edible Oil in India: an Analytical Approach

( Vol-4,Issue-1,January 2017 ) OPEN ACCESS

Prem Narayan


Oilseeds, edible oil industry, demand-supply, area, production and yield.


Oilseeds play an important role in providing a nutritionally balanced diet. These are the principal source of edible oil and protein in Indian diets. Oilseeds are boot edible oil processing industry, which are the most important industries of agriculture sector in India. India is a leading player in edible oil, with the World’s largest importer from Indonesia and Malaysia and third largest consumer. India is the fourth largest oilseeds producing country in the world after Brazil 100 MT, followed by Argentina 66 MT, China 59.6 MT and India 34.6 MT during 2014-15. Oilseeds are the second main sources of protein after cereals in Indian diet. India is the consumer and importer of edible oil. India accounts for 13-15 per cent of oilseed area, 7-8 per cent of oilseeds production, 6-8 per cent of oilseeds production, 4-6 % edible oil production, 12-14 per cent of vegetable oil import and 10-12 percent of the edible oil consumption. Basically the total oilseed area occupied 28.051 million hectares which contributed production 32.75MT during 2013-14. However, the annual compound growth rate of oilseeds 0.31 % area production 3.35% and yield 3.03 % recorded during recent year (2006-07 to 2013-14) however, it was accelerated growth in area 3.70 % production 6.97% and yield 3.15 % recorded during earlier years (1986-87 to 95-96) era of setup Technology mission on oilseeds during 1986 and the negligible growth were recorded in area 0.01 % production 1.08 % and yield 1.07 % during the middle period (1996-97 to 2005-06) due the peter out effect of oilseeds mission. The demand for edible oils in India has shown a steady growth at a CAGR of 4.96% over the period from 2001 to 2015. The growth has been driven by improvement in per capita consumption, which in turn is attributable to rising income levels and improvement of living standards. However, the current per capita consumption levels of India (at 15.91 Kg/year for 2015-16) were lower than global averages (25 kg/year). Furthermore, domestic consumption of edible oil is expected to increase with enhancement in income level and population. Indian agriculture to support oilseeds production to meet the vegetable oil needs of the Indian population has been considered in the context of available sources of oil from oilseed and non-oilseed origins. India needs to produce 17.84 Mt of vegetable oils to meet the nutritional fat needs of projected population of 1685 million by 2050.

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