Latest news with #NationalMissiononEdibleOils
Mint
6 days ago
- Business
- Mint
Mint Primer: Rise and fall of edible oil duties: Who benefits?
More than eight months after imposing a 20% basic customs duty on crude soybean, palm and sunflower oil, the government has reduced this duty by 10%. What is the move aimed at and what will be the impact on fast moving consumer goods (FMCG) companies? Also Read | GST mop-up: The signals for India's economy & taxes What happened in September last year? That's when the government increased the basic customs duty on various edible oils (crude and refined) to protect domestic producers from cheap imports and encourage local cultivation of crops. Effective 14 September, the basic customs duty on crude soybean, palm and sunflower oil was raised from 0 to 20%, making the effective duty on crude oils as high as 27.5%. Similarly, the basic custom duty on refined palm, sunflower and soybean oil was raised to 32.5% from 12.5%, with an effective duty rate of 35.75%. This added to the overall household inflation as manufactures passed on higher prices to consumers. Also Read | Who is liable if a friendly chatbot 'abets' suicide? Why were the duties hiked? India relies heavily on edible oil imports, which meets 57% of its demand. The Centre attributed its decision to increased global production of oilseeds and resultant falling international prices. This glut resulted in cheap imports flooding India, pushing down prices for domestic farmers. Raising the cost of imported edible oils, the thinking ran, would lead to increased procurement, thus supporting more production and ensuring fair compensation for farmers. Additionally, a National Mission on Edible Oils–Oil Palm was launched in October to further support domestic oilseed production. Also Read | YouTubers vs ANI: Fair-use in the spotlight What happened as a result of the government move? Following the hike, packaged oil firms like Marico and AWL Agri Business Ltd passed on prices to consumers, raising household spending on essentials. Packaged food makers also faced edible oil inflation. For instance, palm oil prices surged 43% in the December quarter, leading biscuit-maker Britannia Industries to implement price hikes totalling ₹100 crore in that quarter. How did the Centre respond? Effective 31 May, the basic customs duty on the three crude oils was cut from 20% to 10% in a bid to stabilize edible oil prices and boost demand. The effective import duty on these three products, which includes basic customs duty and additional fees, now stands at 16.5%, down from the previous 27.5%. Meanwhile, the basic customs duty on refined oils remains unchanged at 32.5%, a decision industry bodies such as the Solvent Extractors' Association of India believe will create a level playing field for domestic refiners. What does the cut mean for FMCG firms? It is expected to lower edible oil prices for consumers in the next 25-30 days as companies pass on the benefits. It should also ease the pressure of commodity costs for packaged food companies. Key beneficiaries include Bikaji Foods, Britannia Industries, Nestle India and ITC's food business, according to Nuvama Institutional Equities. Analysts also expect improved margins for FMCG firms over the next two quarters. Other companies could also benefit if palm oil derivatives, used in soaps and detergents, become cheaper.
The Print
22-05-2025
- Health
- The Print
Demonising palm oil won't improve public health. Better focus on food literacy, balanced diet
By positioning palm oil as the primary culprit behind India's growing obesity rate and LDL, or 'bad', cholesterol levels, the article misses a much larger, more nuanced picture that involves food security, farmer welfare, strategic self-sufficiency, and environmental realities. The problem of obesity in India is real and rising. But attributing it largely to palm oil consumption is misguided. India's annual per capita edible oil consumption stands at 19.7 kg, which is well above the ICMR-recommended 12 kg. However, Minister of State for Health and Family Welfare Prataprao Jadhav recently stated in Parliament that there is ' no unanimous scientific evidence ' linking palm oil consumption to negative health effects. He also noted that the Indian Council of Medical Research – National Institute of Nutrition recommends the use of a variety of vegetable oils, including palm oil, as relying entirely on a single vegetable oil may not provide the optimal balance of fatty acids. A recent opinion article in ThePrint , titled Oil is making India obese and import-hungry. Modi wants to change that , goes beyond merely criticising palm oil for increasing obesity in the country. It goes so far as to suggest that the Government of India should exclude this versatile vegetable oil from its National Mission on Edible Oils, citing its widespread use in the unorganised sector, which drives higher consumption and adversely affects public health. However, this increase isn't unique to palm oil. It reflects a larger shift in dietary habits driven by urbanisation, sedentary lifestyles, and the growing intake of ultra-processed foods (UPFs). According to a 2023 WHO report, India's UPF market surged from $900 million in 2006 to nearly $38 billion in 2019. These foods, rich in refined sugars, sodium, and preservatives, pose far greater health risks than any single cooking medium. Beyond diets It is true that palm oil contains saturated fats, but not all saturated fats are created equal. When consumed as part of a balanced diet, palm oil is no more harmful than other edible oils. It contains nearly equal proportions of saturated and unsaturated fats and is rich in antioxidants like vitamin E. Its health impact depends more on the quantity and context of consumption than on its mere presence in the kitchen. However, the conversation must go beyond kitchens and diets. India imports over 15 million tonnes of edible oil annually, including Rs 40,000 crore worth of palm oil, which accounts for about 56 per cent of the total imports. This heavy reliance on imports strains our foreign exchange reserves and exposes us to global price volatility and supply chain disruptions. The National Mission on Edible Oils – Oil Palm (NMEO-OP), backed by Rs 11,040 crore in funding, is a strategic effort to cut edible oils import dependency, boost domestic production, and enhance farmer incomes. This mission is already bearing fruit. In Telangana, farmers have seen up to a 50 per cent rise in prices, earning Rs 21,000 for a tonne of Fresh Fruit Bunch (FFB) produce. States like Karnataka, Mizoram, and Arunachal Pradesh have also embraced oil palm cultivation. Importantly, in India, forest lands are not being recommended and used for oil palm cultivation, contrary to common misconceptions. Only the cultivable land of the individual farmer is under oil palm cultivation mainly as replacement of rice cultivation and that too in agro-ecologically suitable regions only. Oil palm is a rapidly expanding profitable crop in northeastern states under NMEO-OP, contrary to common misconceptions. Also read: Palm oil cultivation is key for Atmanirbhar Bharat. It empowers farmers too Embracing palm oil From an environmental standpoint, palm oil is the world's most land-efficient oil crop, yielding 4-5 tonnes of oil per hectare compared to just 0.4-0.5 tonnes for soybean. According to Our World in Data, palm oil makes up 36 per cent of the world's vegetable oil production using only 9 per cent of the land devoted to oil crops. Replacing it with alternatives like soybean, rapeseed, or sunflower would demand significantly more land, potentially exacerbating deforestation. Oil palm also requires less water than resource-intensive crops like sugarcane or rice, a critical factor for water-stressed regions. NMEO-OP also incorporates sustainability safeguards. Special provision for intercropping of annual crops in oil palm plantation has been made for the initial four years of non-bearing period of oil palm. Such agri-horticultural systems conserve land resources and are better adapted to climate change. Palm plantation provides farmer buy-back guarantees, and offers viability gap funding to protect growers from price fluctuations. The mission further encourages bilateral cooperation with countries like Malaysia in the field of palm oil, especially in research and development, seed supply, and partnership management. Atmanirbhar Bharat is more than just a slogan; it is a strategic push for independence in critical sectors, including food and edible oils. Palm oil isn't just another cooking medium; it's a vital component of India's pursuit of edible oil security. Public health must be addressed through stronger food literacy, better regulation of UPFs, and promotion of balanced diets, not by demonising a crop that sustains thousands of farmers and reduces our import bill by billions. Blaming palm oil unfairly may make for a dramatic headline, but India's food strategy must rise above fear-driven narratives. What the country needs is not a retreat from palm oil, but a smart, sustainable, and informed embrace of it. The author is former Additional Commissioner (Oilseeds), Department of Agriculture & Farmers Welfare, Government of India. Views are personal. (Edited by Aamaan Alam Khan)
News18
03-05-2025
- Health
- News18
Why Ajinkya Rahane Wants Indians To Reduce Edible Oil Consumption?
Last Updated: Ajinkya Rahane has urged fellow Indian citizens To reduce edible oil consumption. Kolkata Knight Riders skipper Ajinkya Rahane has teamed up with the Indian government for a special awareness campaign under the National Mission on Edible Oils (NMEO). The experienced Indian cricketer is supporting the mission to reduce the edible oil consumption in India for a 'healthier, more self-reliant" country. 'I'm proud to join hands with the Department of Agriculture & Farmers' Welfare, Government of India, for a special awareness campaign under the National Mission on Edible Oils (NMEO). The message is simple but powerful: Let's try to reduce our edible oil consumption by just 10%. Not just for ourselves but for our families, and for the country,' Rahane posted on X (formerly Twitter). Doing our bit for a healthier, stronger India 🇮🇳As an athlete, I've always been mindful of what I eat and over the years, I've come to realise that small changes in our daily habits can make a big difference. That's why I'm proud to join hands with the Department of… — Ajinkya Rahane (@ajinkyarahane88) May 3, 2025 Rahane said he felt inspired by the mission from his own playing career after recognising how small but critical changes made in his diet and fitness routines made a huge difference. With a current edible oil consumption of 20 Kgs per person every year, India is operating at a standard much higher than what is considered healthy. 'As an athlete, I've always been mindful of what I eat and over the years, I've come to realise that small changes in our daily habits can make a big difference," Rahane said. 'This campaign is a reminder that good health starts at home. And that even a small change like being mindful of the oil we use can lead to a big impact." 'As a father, I think about the habits we're passing on to the next generation. If we can make healthier choices today, we're setting them up for a stronger tomorrow. Grateful for the chance to do my part. Let's come together to build a healthier, more self-reliant Bharat," he added. Rahane announced his association with the initiative at the sidelines of his playing and captaincy duties for the Kolkata franchise in IPL 2025, where the three-time champions next play against the Rajasthan Royals on Sunday. First Published:
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Business Standard
21-04-2025
- Health
- Business Standard
Every Indian now consumes 24 kg edible oil a year, triple the 2001 level
India's per capita edible oil consumption has nearly tripled in the last two decades, escalating the country's dependence on imports and deepening public health concerns related to obesity and non-communicable diseases, according to a report by Mint. From just 8.2 kg in 2001, per capita annual consumption of edible oil has soared to 23.5 kg—nearly double the limit of 12 kg recommended by the Indian Council of Medical Research (ICMR). Niti Aayog member Ramesh Chand noted that the government is working to enhance domestic production under the National Mission on Edible Oils, with a dual focus on palm oil and traditional oilseeds, Mint reported. India remains heavily reliant on edible oil imports Despite some gains in domestic output, India remains heavily reliant on imports. Recent data from the Solvent Extractors' Association of India (SEA) shows the country consumes about 25–26 million tonnes of edible oil annually, while producing just 11 million tonnes locally—leaving a 60 per cent gap filled through imports. India sources palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Russia and Ukraine. India's import of crude soybean oil more than doubled to over 1.9 million tonnes between November 2024 and March 2025, compared to the same period a year ago. The country's overall edible oil imports stood at an estimated 16 million tonnes in 2023–24, highlighting the widening demand–supply gap. Palm oil leads India's edible oil consumption According to industry figures, palm oil now accounts for over 37 per cent of India's edible oil consumption, followed by soybean (20 per cent), mustard (14 per cent), and sunflower (13 per cent). Demand is particularly high from the HoReCa segment (hotels, restaurants, and catering), driven by a surge in out-of-home food consumption, ready-to-eat products, and bakery items. High oil consumption flagged in big and small cities Home-cooked and commercially prepared oil-rich diets are driving up health issues in big cities as well as Tier-II and Tier-III cities. Excessive oil intake has been linked to obesity, cardiovascular diseases, fatty liver, and type-II diabetes. Centre launches mission to reduce edible oil imports To curb this trend and reduce import dependence, the Centre is ramping up efforts to boost self-sufficiency. In October 2024, it approved the National Mission on Edible Oils–Oilseeds (NMEO–OS), with a budget of ₹10,103 crore. The mission aims to raise oilseed production from 39 million tonnes in 2022–23 to 69.7 million tonnes by 2030–31. It complements the ongoing National Mission on Edible Oils–Oil Palm (NMEO–OP), launched in 2021 with an outlay of ₹11,040 crore. PM calls on nation to reduce edible oil intake
