Following the appeal by Prime Minister Narendra Modi to reduce the use of edible oils, the Solvent Extractors’ Association of India (SEA) has said that it is better to make small sacrifices today than face bigger problems later.
BV Mehta, Executive Director of SEA, said Narendra Modi’s appeal on controlling edible oil consumption carries far deeper economic and strategic significance than many may realise.
“With climate uncertainties rising, biodiesel mandates tightening global vegetable oil supplies, and geopolitical tensions adding fresh risks, this is perhaps the right moment for the nation to think long term. Along with boosting domestic oilseed production, balanced consumption habits will play a crucial role in reducing vulnerability,” he said.
West Asia conflict
Continuing disturbances in West Asia and the prolonged conflict in the region that show little signs of ending soon have already impacted freight, energy prices, currency movements, and overall commodity sentiment. All of this eventually influence edible oil prices and import costs for countries like India dependent on overseas supplies.
At a time when global weather risks like El Nino threaten agricultural production and international edible oil prices remain vulnerable, India cannot afford rising import dependence, he said.
India, which imports close to 60 per cent of its edible oil requirement, places a significant burden ($18 billion last year) on the national exchequer whenever global prices rise.
“Goes without saying that any disruption in production across palm, soybean, or sunflower oil-producing nations can quickly translate into imported inflation for a country like India. So, it won’t be wrong to have sensible usage today in order to help India avoid sharper price shocks tomorrow. Sometimes, tightening the belt today is wiser than struggling with a crisis tomorrow,” Mehta said.
Referring to the impact of West Asia conflict on India in Telangana on Sunday, Modi said India has to spend foreign currency on edible oil imports.
“If every household reduces the use of edible oil, it is a huge contribution to patriotism. This will improve the health of the national treasury and the health of every family member,” he said.