Navigating India's Edible Oil Dependency: The Import Imperative

India's edible oil production is anticipated to reach 9.6 million tonnes by 2025-26, fulfilling only 40% of domestic demand. This leaves a dependency on imports for 16.7 million tonnes. The industry faces structural volatility due to trade realignments, mandates, and geopolitical factors affecting global trade corridors.

India's edible oil production is forecasted to hit 9.6 million tonnes in the 2025-26 marketing year. However, this output will cover only a fraction—40%—of the country's needs, making imports unavoidable.

The Indian Vegetable Oil Producers' Association (IVPA) indicates that importing around 16.7 million tonnes of cooking oils will be necessary, primarily from Argentina, Brazil, Malaysia, and Indonesia. The nation currently imports about 60% of its edible oil requirements.

IVPA President Sudhakar Desai warns that global edible oil markets are experiencing structural volatility due to trade realignments and geopolitical shifts, affecting price and supply chains. Trade policies, including recent FTAs and bilateral agreements, now play a critical role in pricing and sourcing decisions for India.

(With inputs from agencies.)