India's Path to Edible Oil Self-Sufficiency: Niti Aayog's Bold Strategy

Niti Aayog suggests higher import duty on edible oils and leveraging public-private partnerships to make India self-sufficient in edible oil production. The report emphasizes a flexible tariff structure, customized technology clusters, and the importance of large-scale plantations. Domestic production currently fulfills only 40-45% of India's edible oil requirements.

Niti Aayog has proposed a comprehensive strategy to enhance India's self-sufficiency in edible oil production, advocating for higher import duties and a substantial duty gap between crude and refined oil.

Fostering public-private partnerships is seen as vital, with a focus on leveraging private sector expertise in technology, marketing, seed production, and area promotion across all oilseed crops, including oil palm, with buy-back arrangements.

A flexible tariff structure responsive to global market prices, domestic trends, and MSP for oilseeds is recommended for safeguarding domestic production and benefiting processing industries.

India currently meets only 40-45% of its edible oil demand domestically, relying heavily on imports to bridge the gap. The import volume of edible oils surged to 16.5 MT in 2022-23, primarily driven by palm oil.

The report also emphasizes aligning support prices with the import duty framework to benefit farmers, processors, and consumers. Promoting large-scale plantations and declaring oil palm as a plantation crop are also highlighted as critical measures for enhancing domestic production.

(With inputs from agencies.)