Two events converged to create a shortage of edible oils globally; the war in Ukraine that impacted the availability of sunflower oil and the ban on palm oil exports by Indonesia. The latter was totally unpredictable, as Indonesia produces almost three times the volume of palm oil it needs for domestic consumption. Yet, the archipelago has witnessed spiraling edible oil prices, leading to a cessation of exports.
India’s success in increasing oilseeds production (by more than 40 per cent in five years) is commendable but has not been able to keep up with growing consumption, resulting in rising imports of edible oils year after year (except for 2020). India is the leading producer and importer of edible oils and the second-largest consumer. Around 60 per cent of edible oils are imported, more than two thirds of which are accounted for by palm oil and the rest by soya and sunflower.
The increase in per capita consumption of edible oils is curious, given the rising trend of lifestyle diseases: coronary heart disease and Type 2 diabetes. According to last year’s Economic Survey, urbanisation has increased reliance on oil-heavy processed foods. It’s not just that dietary preferences have shifted, but that the share of traditional oils has fallen drastically. Typically, Indian cooking involved ‘healthy’ oils such as mustard, groundnut, sesame, and in certain areas, cottonseed and coconut oils.
Mustard oil, like olive oil, is rich in heart-healthy monounsaturated fats. Today, palm oil which is heavy in saturated fats accounts for 55 per cent of consumption – mainly in processed foods, or blended with other oils. Ghee and coconut oil, too, are rich in saturated fats but have been traditionally used for millennia with no adverse health effects.
The National Mission on Edible Oils and Oil Palm aims to increase domestic production of palm oils and has met with some success. The objective is to bring 10 lakh hectares under palm oil, which can yield up to 4 tonnes per hectare. However, the crop is water-intensive, and therefore not a good fitfor water-stressed regions, whereas mustard, groundnut, and soya bean are grown in rain-fed areas of various states.
The focus of the Oil Palm mission is on the northeast and the Andaman Islands, but – as experts have consistently pointed out – it is not an environmentally sound proposition. Indonesia, the global hub of palm oil production, is a cautionary tale in this respect. Clearing of forest land to make way for oil palm plantations had taken a heavy environmental toll, besides wrecking biodiversity and stoking social conflicts over land use. It must be kept in mind that both the northeast and the Andamans are particularly blessed in terms of biodiversity.
For reasons of self-reliance, environment, and health, it is important to boost domestic production of traditional oils. India is blessed with a wide basket of major and minor oilseeds. For example, minor oilseeds include tree oils, such as sal, karanj, kokum, and mahua. But these are largely locally produced and consumed and their potential remains untapped. The collection and sale of these oilseeds could also provide an additional source of income for tribal communities. Many districts have also cultivated oilseeds that are unique to their area.
For India, the answer lies in a fresh ‘yellow revolution’. The first attempt to make India self-reliant in oilseeds was launched as far back as 1986, targeting the nine major oilseeds, including two nonedible varieties. Soya bean cultivation was introduced in Madhya Pradesh to excellent effect but overall, the initiative proved a failure, largely due to the flood of cheap imports enabled by lower import tariffs.
Since the 1970s – when 96 per cent of edible oil consumption was met through traditional oils – India has had an uncomfortable relationship with cooking mediums. The promotion of cheap hydrogenated vegetable oils – ubiquitously referred to as ‘Dalda’ – certainly undermined public health. It is only in the last couple of decades that awareness of its negative effects has spread.
Equally enduring was the damage it did to domestic oilseed production, by undercutting the price of edible oils. Production revived briefly thanks to the Yellow Revolution, but low tariffs on edible oil and then, the adulterated mustard oil scandal of the late 1990s, dealt a severe blow.
Heavily incentivising small farmers and forest-dependent communities to grow and collect oilseeds of all kinds would go a long way in meeting the shortfall of edible oils. Small-scale processing – cold-pressing, and filtration – as opposed to industrial processes that heat and degrade the oils, is certainly the healthier choice. Today, coldpressed oils are sold as a premium product in high-end stores.
India has tremendous potential to increase oilseed production, for example on fallow land. At the same time, from a health perspective, patterns of consumption need to change, in terms of quality and quantity.
(The writer is a senior journalist with 35 years of experience working with major newspapers and magazines. She is now an independent writer and author. She tweets at @BhavKang)
