Business is booming.

India’s edible oil imports to stay high despite 2025–26 modest production gains

 

By Faridat Salifu

India will remain heavily dependent on imported edible oils in the 2025–26 marketing year, even as domestic output is projected to rise to about 9.6 million tonnes.

Industry projections indicate that the country will still import roughly 16.7 million tonnes of edible oils to meet consumption needs, highlighting a persistent structural supply gap.

The Indian Vegetable Oil Producers’ Association (IVPA) said local production growth is not keeping pace with rising demand driven by population growth, urbanisation and changing food habits.

Palm oil, soybean oil and sunflower oil are expected to dominate import flows, with supplies mainly coming from Southeast Asia and South America.

Market analysts say the imbalance between production and consumption reflects long-standing challenges in oilseed productivity, land use pressure and limited processing capacity.

The continued reliance on imports also exposes India’s food system to global price volatility, trade policy shifts and supply chain disruptions.

IVPA officials warned that without major investment in domestic oilseed farming and processing infrastructure, India’s edible oil import bill will remain structurally high in the coming years.

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