NITI Aayog unveils strategy to boost edible oil production by 43.5 million tonnes in Atmanirbharta drive

New Delhi, Aug 29 (IANS) The NITI Aayog on Thursday released a report outlining strategic interventions to increase India’s domestic edible oil production by a massive 43.5 million tonnes (MT) to bridge the import gap and put the country on a trajectory toward self-sufficiency.

The report titled "Pathways and Strategies for Accelerating Growth in Edible Oils Towards the Goal of Atmanirbharta" was released by NITI AAyog Vice-Chairman Suman Bery in the presence of senior officials.

Overall, the proposed strategic interventions could achieve projected edible oil supplies of 36.2 MT and 70.2 MT, by 2030 and 2047, respectively.

The potential gain in edible oil production estimated from the proposed strategic interventions combined with the existing production level is anticipated to achieve self-sufficiency with the recent growth trend (CAGR of 3 per cent), the report states.

The strategic interventions recommended in this report, offer a vibrant path towards reducing import dependence, according to the report.

It states that strategically retaining and diversifying oilseed crops and focusing on areas potentially lost to cereal cultivation could boost the country's edible oil production by 20 per cent in nine states, adding 7.36 MT of oilseed production and reducing import dependence by 2.1 MT.

It also points out that rice fallow areas across the country reveal a promising opportunity for horizontal expansion in oilseed cultivation.

Utilising one-third of the rice fallow area in ten states for oilseed cultivation could increase oilseed production by 3.12 MT and reduce import reliance by 1.03 MT.

The report further states that bridging the yield gap from 12 per cent in castor to 96 per cent in sunflower through widespread adoption of improved technologies and effective management practices, i.e., vertical expansion could increase the country's domestic oilseed production by 17.4 MT. This would reduce edible oil imports by 3.7 MT.

Palm oil alone, through targeted expansion, can potentially increase a staggering 34.4 MT of edible oil, making a substantial stride towards closing the existing demand-supply gap.

The effort should focus on capitalizing on the untapped potential identified by ICAR-IIOPR in the 284 districts, which estimates an additional 2.43 million hectares of land across the country for oil palm cultivation.

Furthermore, tactically utilising two-thirds of the highly suitable areas of wastelands located in ICAR-IIOPR identified districts (i.e., 6.18 million hectares) presents a significant opportunity for further horizontal expansion, the report observes.

It highlights that rice bran, offers an estimated potential of 1.9 MT of edible oil, with 0.85 MT currently untapped. Similarly, cottonseed presents a potential for an additional 1.4 MT of edible oil production, contributing to a further 9.7 per cent reduction in the country's edible oil demand-supply gap or import dependence.

In addition, the report highlights that optimizing seed utilization and processing capabilities is critical to strengthening the foundation for edible oil self-sufficiency indicating that high-quality seeds alone can contribute significantly (15-20 per cent) to increased production, potentially reaching even higher levels (45 per cent) when combined with efficient management of other agricultural inputs.

However, the current Seed Replacement Ratio (SRR) falls short of the target of 80-85 per cent, ranging from 25 per cent in groundnut to 62 per cent in rapeseed mustard, hindering overall yield improvement.

The report also suggests that modernising existing mills and strategically investing in processing infrastructure will improve efficiency and minimise waste since the country's vegetable oil sector is characterised by many small-scale, low-technology plants with substantial excess capacity, utilising only 30 per cent of its edible oil refining capacity.

Since achieving self-sufficiency in edible oil is a critical national priority, to navigate this path successfully the recommendations and the way forward of this report laid down are based on the valuable insights gained from a primary field survey encompassing 1,261 farmers across seven major oilseed-growing states (Rajasthan, Maharashtra, Madhya Pradesh, Uttar Pradesh, Haryana, Andhra Pradesh, and Karnataka), it adds.

The report concludes with several recommendations to achieve self-sufficiency in edible oils, including focusing on area retention of oilseeds, seed traceability and quality assurance, adoption of improved and advanced production technologies, value addition through processing and refining, effective marketing and robust market linkages, encouraging public-private partnerships, developing a dynamic trade policy for balanced growth, broadening the scope of the National Mission on Edible Oils, enhancing public awareness on recommended dietary guidelines, incentivising and encouraging domestic oilseed consumption in the food industry.

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