India may face a shortfall of more than six million tonnes of edible oil in 2006-07 oil year, as consumption is likely to increase by 5% while production to dip by more than 4%.
India’ edible oil production may fall by 3,00,000 tonnes to 6.8 million tonnes this year, eminent edible oil expert and Godrej International Director Dorab E Mistry said today.
“Production of edible oils in India is likely to dip by 3,00,000 tonnes to 6.8 million tonnes in 2006-07 oil year from last year,” Mistry said at the Price Outlook Conference here.Edible oil consumption is estimated to grow by nearly 5% to 12.86 million tonnes in 2006-07 compared to an estimated 12.28 million tonnes consumed in the previous year, he said.
Mistry has pegged the edible oil imports at 6.31 million tonnes in 2006-07, up from 5.4 million tonnes in 2005-06.The oilseeds production is estimated to fall by two million tonnes in 2006-07, which includes both Kharif and Rabi crops compared to the ouput of last year, according to Mistry.
Mistry, who is known for his credible forecast, also said rapeseed and mustard acreage in the current Rabi season slipped because of farmers’ diversification to wheat while the coverage under groundnut suffered during last year’s Kharif due to shifting to cotton.The dip in estimated edible oil output is very marginal compared to the fall in oilseeds mainly due to a large carryover stock of mustard (with Nafed), he said.