Lok Sabha Question No. 3377 (UNSTARRED), answered on 2022-03-23
Subject: Increase in Prices of Edible Oils
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Hemant Patil

## MINISTRY  OF CONSUMER  AFFAIRS, FOOD &  pUBLtc  DtsTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARREO  QUESTION NO.3377 TO BE ANSWERED  Ol{ 23RD MARCH, 2022

## INCREASE IN PRICES OF EDIBLE OtLS

## t3377.  SHR| HEMANT SRIRAM PATTL:

Will the Minister of GONSUMER AFFAIRS, FOOD AND PUBLIC DlsTRtBUTtoN sqfi-sr qrst,  er* *r w&rftr A-d<or ri* be pteased to state:

- (a) whether the prices of edibte oits and such other commodities  have increased due to the gap between their demand and supply and as a result the dependency on their import has increasedl
- (b) if so, the details thereof;
- (c) the details of production,  demand, import and prices of edible oits during the last three years;
- (d)  the steps taken/proposed  to be taken by the Government to increase domestic production and to controt prices of edible oils;
- (e)  whether the Government  proposes  to  supply edible oils at subsidized rates to consumers; and
- (f) if so, the details  thereof?

## ANSWE R

MINISTER OF STATE FOR MINISTRY  OF RURAL DEVELOPMENT AND GONSUMER AFFAIRS,  FOOD & PUBLIG DISTRIBUTION (sADHVt  NTRANJAN JYOTI)

(a) and (b). The prices  of essential commodities including edible oits are impacted by various factors such as gap between the demand and supply, weather conditions, logistics issues, international prices etc. Domestic production of edible oils is unable to meet domestic demand. The gap between demand and supply of edible oils is around 56yo and is met through imports. The increase in the international  prices  of edible oils have an impact on domestic prices of edible oils in the country.

- (c): The details of production, demand and import of edibte oils during the Iast three years is gaven  below:

| Year (Nov.-Oct.)   | Domestic Production/Availa bility of edible oils (in LMT)*   | lmport of edible Oils (in LMT)**   | Demand (in LMT)   |
|--------------------|--------------------------------------------------------------|------------------------------------|-------------------|
| 2018.{9            | 103.52                                                       | 155.7                              | 259.22            |
| 2019-20            | 106.55                                                       | ,t34.16                            | 240.71            |
| 2020-21            | t{1.51                                                       | 134.52                             | 246.O3            |

The details of All lndia average domestic retail praces (in Rs/Kg)  of edable oils during the last three years is given betow:

| Name of edible oi!   | 20{9 (Jan.-Dec.)   |   2020 (Jan.-Dec.) | 2021 (Jan.-Dec.)   |
|----------------------|--------------------|--------------------|--------------------|
| Groundnut oil        | 130                |             147    | 176.2a             |
| Mustard oil          | {09.85             |             123.34 | 170.67             |
| Vanaspati            | 80.52              |              92.27 | 131.O2             |
| Soyabean oftl        | 92.29              |             102.76 | 147.26             |
| Sunflower oil        | 99.84              |             114.23 | 164.36             |
| Palm oil             | 76.34              |              92.14 | 12A.2a             |

Source: Department of Consumer Affairs

(d): The Government of  lndia has been  implementing a  Gentralty Sponsored Scheme, National Food Security Mission- Oilseeds  & Oil palm (NFSM-OS&OP) from 2Ol8-{9 to augment the availability  of vegetabte oits and to reduce the import of edible oils by increasing the production  and productivity  of oilseeds and area expansion  of Oil Palm & Tree Borne Oilseeds  in the country.

Now, the Government has launched a separate Mission for Oil Palm, which is the National Mission for Edible Oils (Oil Palm) - NMEO (OP) to promote oil palm cultivation for making the country Atmanirbhar  in edible oils with special focus on North-Eastern  States and Andaman and Nicobar !slands.

In order to improve the domestic availability and to keep prices of edible oils under control,  the Government  has been rationalizing the duty structure on edible oils during 2021-22 to reduce the price burden of common man. The following measures  have been taken:

- o ln a bid to control the rise in cooking oit prices,  the Gentrat Government has cut the basic duty on Grude  palm  Oil, Grude Soyabean Oil and Grude sunflower  oil from 2.5o/o to Nil. The Agri-cess  on these oits has been brought to 5o/o .
- . The Government has extended the free import of Refined  palm  oits for a
- o The basic duty on Refined soyabean oil and Refined sunflower  oil has been slashed to 17.5Yo  from the current 32.5o/o and the basic duty on Refined Palm Oils has been reduced lrom 17.5o/o  to 12.5o/o.
- period upto 31.12,2022
- o The current basic rate of import duty of zero percent  on Grude  patm  oil,
- Grude Soyabean  oil and Crude Sunflower  Oil has been extended upto 3orh September, 2022 and the rate of import duty on Refined  palm  Oils at 12.5o/o1 Refined soyabean oil and Refined sunflower  oil at 17.5yo has also been extended  up to SOth Septemberr  2022.
- . The Department  of Food and Public Distribution  had imposed stock Iimits on Edible Oils and Oilseeds w.e.f. 8s October, 2O21 lot a period up to 3{.t Matchr2022.
- o To control prices of edible oils, futures trading in mustard oil on NCDEX has been suspended and stock timits have been imposed.
- o Furtherr an amended Order  .The  Removal of Licensing  Requirements, stock Limits and Movement Restrictions on specified Foodstuffs (Amendment)  Order, 2O22, has been notified w.e.f. O3d February, 2O22 specifyring  the quantities  of stock limits of edible oil & oil-seeds  , to be implemented  by all states/urs.  This order has been issued to ensure the smooth availability  of edible oils and oil-seeds in the country.
- (e) and (f): At present, there is no proposal  by the Union Government  to supply edible oils at subsidized  rates to consumers.