India’s Edible Oil Imports Surge 22% to Rs 1.61 Lakh Crore in 2024-25
India’s edible oil imports soared by 22% in value to Rs 1.61 lakh crore during the 2024-25 marketing year (November-October), even as import volumes held steady at 14 million metric tonnes (MMT), according to the Solvent Extractors’ Association (SEA). The spike highlights inflationary pressures on cooking oils despite government efforts to boost domestic production.
Key Insights from SEA’s 2024-25 Report
1. Value vs. Volume: Global Prices Drive Spike
- Import value: Rs 1.61 lakh crore (up from Rs 1.32 lakh crore in 2023-24).
- Import volume: Unchanged at ~14 MMT, signaling higher global prices, not demand growth.
2. Breakdown of Major Imported Oils
| Oil Type | Volume (MMT) | Share | Key Suppliers |
|—————-|————–|——-|———————–|
| Palm Oil | 8.5 | 61% | Indonesia, Malaysia |
| Soybean Oil | 3.2 | 23% | Argentina, Brazil |
| Sunflower Oil | 2.3 | 16% | Ukraine, Russia |
3. Price Trends Fueling the Surge
- Palm oil: Up 18-20% (lower SE Asian output, export curbs).
- Sunflower oil: 25-30% pricier (Russia-Ukraine war disruptions).
- Soybean oil: Volatile due to South American harvest swings.
Why Is India Still Importing 60% of Its Edible Oils?
Despite the National Mission on Edible Oils-Oil Palm (NMEO-OP), dependence persists due to:
– Low yields: Fragmented farms, poor seed adoption, and erratic monsoons.
– Rising demand: Population growth and processed food industry expansion.
– Policy gaps: Slow oil palm rollout and weak MSP implementation.
Impact on Consumers & Economy
- Retail inflation: Mustard oil prices up 12-15% YoY; households strained.
- Trade deficit: Adds pressure to India’s current account, risks rupee depreciation.
- Farmer distress: Local oilseed growers face import competition and price swings.
Government Steps & Industry Demands
Policy Measures:
✔ Increased MSPs for soybeans, groundnuts.
✔ Oil palm expansion in Andhra, Northeast, Odisha.
✔ Import duty adjustments to balance affordability and domestic industry.
Industry Voices:
– B.V. Mehta (SEA): “Urgent need to raise oilseed productivity and diversify sources.”
– Analysts: Advocate GM oilseed approvals and better supply chains.
5 Steps to Reduce Import Reliance
- Boost R&D: Climate-resistant, high-yield oilseed varieties.
- Fix procurement: Timely MSP payouts to farmers.
- Diversify imports: Source sunflower oil from Africa.
- Consumer shift: Promote indigenous oils (mustard, coconut).
- Policy speed: Faster NMEO-OP execution.
Conclusion
India’s Rs 1.61 lakh crore edible oil import bill calls for urgent agri-reforms. While global factors play a role, strategic investments in domestic production and smarter trade policies can mitigate future risks.
For more on India’s agri-economy, follow NextMinuteNews.
