Major Edible Oils in India and the World

Edible oils are essential commodities used in various culinary applications and food preparation worldwide.

In India, these oils play a crucial role in the diverse and rich culinary traditions.

This article aims to provide an informative overview of the major edible oils in India and the world, covering domestic production, import data, and other important aspects.

Palm Oil

Palm Oil Palm oil is the most widely consumed edible oil globally and holds a significant share in India’s edible oil market.

It is derived from the fruit of the oil palm tree and is known for its high yield and versatile applications.

India relies heavily on imports to meet its palm oil demands, with Indonesia and Malaysia being the primary suppliers.

• Domestic Production (India): India’s domestic production of palm oil is relatively limited, and the country depends on imports to satisfy its growing consumption needs.
• Import Data: India imports a substantial amount of palm oil annually. The import figures fluctuate based on global prices and domestic demand.

Soybean Oil

Soybean Oil Soybean oil is another popular edible oil used extensively in India and worldwide.

It is produced from soybeans and is considered a healthier option due to its lower saturated fat content.

India is one of the leading producers of soybeans, which makes it a key player in the soybean oil market.

• Domestic Production (India): India is one of the top soybean producers globally, ensuring a steady supply of soybean oil for domestic consumption and export.
• Import Data: Although India produces a significant portion of its soybean oil, it may still import small quantities to meet the rising demand or fill supply gaps during certain periods.

Sunflower Oil

Sunflower Oil Sunflower oil is known for its light flavor and high smoking point, making it suitable for various cooking methods.

The sunflower plant is cultivated extensively in India and is a vital source of edible oil for the country.

• Domestic Production (India): India has seen steady growth in sunflower oil production to cater to its domestic consumption needs.
• Import Data: While India primarily relies on domestic production, there might be instances of importing sunflower oil to balance supply and demand.

Mustard Oil

Mustard Oil Mustard oil is an integral part of Indian cuisine, especially in the northern and eastern regions. It is extracted from mustard seeds and is renowned for its pungent flavor and health benefits.

• Domestic Production (India): India is the largest producer of mustard seeds globally, ensuring a steady supply of mustard oil for domestic use and export.
• Import Data: India rarely imports mustard oil due to its robust domestic production.

Olive Oil

Olive Oil Olive oil is popular in Mediterranean cuisine and is known for its health benefits, particularly the monounsaturated fats it contains.

While India’s consumption of olive oil is comparatively lower than other edible oils, it has been gaining popularity in recent years.

• Domestic Production (India): India’s domestic production of olive oil is limited due to specific climatic requirements.
• Import Data: India heavily relies on imports, primarily from countries like Spain, Italy, and Greece, to meet the demand for olive oil.

Groundnut (Peanut) Oil

Groundnut (Peanut) Oil Groundnut oil, also known as peanut oil, is a common edible oil used in Indian cooking.

It is extracted from groundnuts and is characterized by its nutty flavor and high smoking point.

• Domestic Production (India): India is one of the leading producers of groundnuts, ensuring a steady supply of groundnut oil for both domestic and international markets.
• Import Data: India might occasionally import groundnut oil to fulfill any temporary shortages.

MSP on Edible Oil

In India, the government implements a Minimum Support Price (MSP) system to provide farmers with a safety net for certain agricultural commodities, including edible oil crops.

The MSP ensures that farmers receive a fair price for their produce and protects them from market fluctuations.

Several edible oil crops are covered under the MSP scheme, encouraging farmers to cultivate these crops and contribute to the country’s self-sufficiency in edible oil production. Some of the prominent edible oil crops covered under the MSP in India include:

• Soybean: Soybean is a major oilseed crop in India and one of the primary sources of soybean oil. It is widely cultivated in states like Madhya Pradesh, Maharashtra, Rajasthan, and Gujarat.
• Groundnut (Peanut): Groundnut is a significant oilseed crop grown in states like Gujarat, Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka, and is a major source of groundnut oil.
• Mustard: Mustard is an essential oilseed crop predominantly cultivated in states such as Rajasthan, Uttar Pradesh, and Haryana. Mustard oil holds cultural and culinary significance in Indian households.
• Sunflower: Sunflower is an oilseed crop known for its high-quality oil, grown mainly in states like Karnataka, Andhra Pradesh, and Telangana.
• Sesame (Til): Sesame seeds are used to produce sesame oil and are cultivated in states like Gujarat, Rajasthan, and Uttar Pradesh.
• Linseed (Flaxseed): Linseed is grown for its oil-rich seeds, known as flaxseed, and is cultivated in states like Madhya Pradesh, Bihar, and Assam.

The inclusion of these edible oil crops under the MSP program not only supports farmers but also contributes to the availability and affordability of edible oils for consumers in India.

Additionally, it plays a crucial role in reducing the country’s dependence on edible oil imports and strengthens India’s agricultural and food security.

Recent Govt Measures to control Prices

in order to control and ease the prices of edible oils in the domestic market, the Government of India has taken the following steps:

• The basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil was cut from 2.5% to Nil. The Agri-cess on Oils was brought down from 20% to 5%. On 30^th December, 2022, this duty structure has been extended upto 31^st March, 2024.
• The basic duty on Refined Soybean oil and Refined Sunflower Oil was reduced to 17.5% from 32.5% and the basic duty on Refined Palm Oils was reduced from 17.5% to 12.5% on 21.12.2021. This duty has been extended up to 31^st March, 2024.
• The Government has extended the free import of Refined Palm Oils till further orders.

Conclusion

Edible oils are indispensable ingredients in culinary practices globally, and India is no exception.

While the country produces a significant portion of its edible oils, the reliance on imports remains essential to meet the ever-growing demand and ensure a stable supply.

Understanding the major edible oils in India and the world, along with their domestic production and import data, helps create a clear picture of the industry’s dynamics.

As consumers become more health-conscious and culinary preferences evolve, the edible oil market is expected to witness further changes in the years to come.