Measures to Increase Availability of Edible Oils

There is gap of about 50% between demand and supply of edible oils in the country. In order to augment domestic availability and to keep the prices under control, Central Public Sector Undertakings (CPSUs) are importing edible oils under the Scheme for distribution of subsidised imported edible oils limited to 10 lakh tons per annum for distribution through PDS. States bear the cost of oil, transportation and packaging, over which subsidy of Rs 15/- per Kg is given by the Central Government. This information was given by the Minister of consumer affairs, food and public distribution Prof. K.V. Thomas in a written reply in Rajya Sabha on March 4, 2013. 

The Minister said he consumption of edible oils in the country has been increasing steadily due to increasing population and increase in purchasing power whereas the production of oilseeds is not increasing as compared to demand. At present to bridge this gap, import of edible oils has been kept under Open General Licence (OGL) and import duty on crude and refined edible oils is maintained at 2.5% and 7.5% respectively. In order to enhance the production and productivity of oilseeds, Government is implementing a Centrally Sponsored Integrated Scheme on Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) through Department of Agriculture in major oilseeds and oil palm growing States.