India's Vegetable Oil Revolution: Reducing Import Dependency and Boosting Domestic Production

Introduction

‍Welcome to Globoil Post, where we bring you the latest highlights in the edible oil and agri-trade industry. In this exclusive interview, Sandeep Bajoria, a prominent figure in the edible oil space, shares valuable insights on India's vegetable oil industry. As the CEO of Sunvin Group and Chairman of Globoil India Organising Committee, he sheds light on India's mission to reduce import dependency and boost domestic production of vegetable oil.

Reducing Import Dependency

‍India is on a determined "mission" to reduce its dependency on vegetable oil imports. The government aims to increase local planting area and productivity by 25% to achieve self-reliance in edible oil production. According to Sandeep Bajoria, the government plans to reduce the import dependence from 70% to 50% by facilitating local oilseed production.

Import Duty Considerations

‍To fund this mission, the Indian government is contemplating raising the import duty on vegetable oils. Currently, import duties range from 38.5% to 49.5%. Bajoria reveals that the government is actively exploring the possibility of raising import duties by 5% on all edible oils.

Impact of COVID-19 on Imports:In the wake of the extended lockdown, edible oil demand in India has shifted, with a focus on competing soft oils used in home cooking. Palm oil imports have reduced, while soybean oil and sunflower oil imports have seen an increase due to domestic cooking demands.

Ukraine's Declining Market Share

‍The Russian share of the Indian sunflower oil market is rapidly increasing due to its competitive pricing. Although Ukraine remains the largest sunflower oil exporter to India, its market share has declined, facing competition from Russian and Argentinian sunflower oil. The competitively priced oils from Russia and Argentina have led to a shift in market dynamics.

Conclusion

‍India's vegetable oil industry is undergoing a transformation, with a strong focus on reducing import dependency and increasing domestic production. Sandeep Bajoria's insights shed light on the path India is taking towards self-reliance in edible oil production, marking a significant step in the country's quest for food security.

Note: The content and quotes in this article are based on an exclusive interview with Sandeep Bajoria, CEO of Sunvin Group, Chairman of Globoil India Organising Committee, and President of the International Sunflower Oil Association.

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