The Ministry of Consumer Affairs, Food and Public Distribution released a statement. India has an optimal stock of all edible oils. According to industry sources, the current stock of all edible oils in the country is around 21 LMT. and 12 LMT approx. is in transit and will arrive in May 2022. Therefore, the country has enough resources to cover the lean season due to Indonesia’s export ban.
On the oilseeds front, DA&FW’s second advance estimate released in February 2022 shows a very positive picture of soybean production for the year 20221-22 at 126.10 LMT, which is higher than the 112 LMT production of Last year. Due to increased mustard seed plantings of 37% in all major producing states including Rajasthan compared to last year, production could reach 114 LMT in the 2021-22 season.
The Department of Food and Public Distribution monitors the price and availability situation and meetings are held regularly with major edible oil processing associations to discuss further reduction in domestic edible oil prices and MRP to relieve consumers.
Palm oil (crude + refined) constitutes about 62% of total imported edible oils and is imported mainly from Indonesia and Malaysia, while soybean oil (22%) is imported from Argentina and Brazil and sunflower oil (15%) is mainly imported. from Ukraine and Russia.
International edible oil prices are under pressure due to the global production shortfall and increased export taxes/levies by exporting countries. India is one of the largest producers of oilseeds in the world and the sector looms large in the agricultural economy, accounting for the estimated production of 37.14 million tonnes of nine oilseeds grown during the year 2021-22 according to the 2nd advance estimate published by the Ministry of Agriculture and Farmers’ Welfare.
“Close day-to-day monitoring is exercised on edible oil prices so that appropriate measures can be taken to control edible oil prices to ensure that prices remain stable and consumer interests are protected,” according to to the declaration.
The interdepartmental committee held weekly on agricultural products chaired by the Secretary (Food) closely monitors the prices and availability of agricultural products, including edible oil, taking into account the interest of farmers, industry and consumers.
The committee reviews the price situation on a weekly basis, considers relevant measures for edible oils and other food products based on domestic production, demand, domestic and international prices, and international trade volumes.
Special teams have also been formed by central and state governments to prevent hoarding and profiteering under the Essential Commodities Act. These spot checks will continue to check unscrupulous elements.