(a) whether there is a huge gap in the demand and supply of edible oil in the
country and the retail prices have increased sharply in the last few months;
(b) if so, the details alongwith the reasons therefor;
(c) whether the Government has taken any steps to increase production and
enhance imports to meet the shortfall; and
(d) if so, the details thereof?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(PROF. K.V. THOMAS)
(a) & (b) Yes, Madam. There is gap in demand and supply of edible oils in the
country, which is met through imports. The increase in demand of the edible oils in
the country is due to increase in population & better living standard.
The retail prices of the packed edible oil like soyabean oil, sunflower oil,
palm oil, groundnut oil, mustard oil have increased during the last three months. A
Statement showing details of retail prices of edible oil for the current month and for
the last three months is annexed. Since about 50% of domestic requirement is met through
imports, domestic prices are susceptible to the changes in International Prices.
(c)& (d): The Government has taken various steps to increase production and enhance the
imports to meet the shortfall such as :-
i) A Centrally sponsored Integrated Scheme of Oilseeds, Oil Palm and Maize (ISOPOM) is
being implemented in 14 major oilseeds growing states and 9 oil palm growing states to
increase production of oilseeds/edible oils. Under this scheme, as well as under Macro
Management of Agriculture (MMA) and Rashtriya Krishi Vikas Yojana (RKVY), assistance is
provided for improving agronomic practices.
ii) Extension work is being taken up for propagation of improved production and pest
management technologies in respect of oilseeds.
iii) A new sub-scheme has been introduced during 2010-11 under RKVY as a special
initiative for pulses and oilseeds for organizing 60,000 pulses and oilseeds villages
in rainfed areas.
iv) Government has allocated additional budget of Rs 300 crores during 2011-12
under RKVY for oil-palm area expansion programme
v) Imports of edible oils (except coconut oil ) is under Open General License (OGL)
vi) Imports of edible oils have been liberalized by reducing import duty to zero
and 7.5% on crude and refined oils respectively since April 2008,which has been
continued
vii) Export of edible oils has been banned since March, 2008 except coconut oil
(through Cochin Port), certain oils produced from minor forest produce and edible oils
in branded consumer packs of upto 5 kgs. subject to a limit of 10,000 tons per year.
The ban on export of edible oils with above exemptions has been extended upto
September, 2012.
viii) In order to augment availability of edible oils in the domestic market,
Government had introduced a “ Scheme for Distribution of Subsidized Imported Edible
Oils through States/UTs Governments†for distribution to ration card holders with
a central subsidy of Rs 15/-per Kg in 2008. The scheme has been extended upto September 2012.