India’s edible oil import bill has risen by over 20% in the first eight months of oil year 2025-26 (November–October), with the Solvent Extractors’ Association of India (SEA) forecasting it to reach ₹1.75 lakh crore by year-end, according to a July 22 letter by SEA President Sanjeev Asthana.
Import Bill Surge
During November–June of the current oil year, India imported over 104 lakh tonnes of edible oil, with the import bill rising from ₹99,000 crore to ₹1.19 lakh crore — an increase of nearly ₹20,000 crore or 20.20% growth in just eight months. The full-year bill last year stood at ₹1.61 lakh crore. “This is not merely another statistic; it represents a substantial outflow of precious foreign exchange that could otherwise be channelled into strengthening India’s agricultural infrastructure,” Asthana stated.
| Period | Import Bill (₹ crore) | Tonnage (lakh tonnes) |
|---|---|---|
| Nov-Jun 2024-25 (8 months) | 99,000 | — |
| Nov-Jun 2025-26 (8 months) | 1,19,000 | 104+ |
| Full oil year 2024-25 | 1,61,000 | — |
| Full oil year 2025-26 (projected) | 1,75,000 | — |
Drivers of the Increase
Asthana attributed the rise to multiple factors:
- Weaker rupee making imports costlier.
- Weather uncertainties, including a below-normal monsoon forecast and delayed sowing in several oilseed-growing regions, raising concerns over domestic production.
- Global developments: Indonesia’s expanding biodiesel programme is diverting larger quantities of palm oil from food to fuel, tightening global supplies.
- Geopolitical uncertainties and higher freight and insurance costs keeping international edible oil prices volatile.
“The net effect is that India may be compelled to import more, and pay considerably more for every tonne,” Asthana said, emphasising that the long-term solution lies in boosting domestic production.
Monsoon and Sowing Concerns
The South-West monsoon has been uneven, with several oilseed-growing regions recording rainfall well below normal. Initial kharif sowing data reflect this stress:
- Groundnut, soybean and sunflower sowing has lagged behind last year’s pace.
- Overall oilseed acreage stood at 147 lakh hectares as of July 17, down from 155.7 lakh hectares in the same period last year — a decline of 8.6 lakh hectares.
Asthana expressed particular concern about weaker rainfall during the August–September flowering period, which could adversely affect oilseed yields and deplete reservoir levels, with implications for the rabi season. However, he noted that “sowing delays do not necessarily translate into lower production; historically, acreage has caught up once rainfall improves. The coming weeks will therefore be decisive.”
Calls for Diversification
Referring to recent calls by S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), for incentive-driven crop diversification toward oilseeds and pulses, Asthana said these reinforce a direction SEA has consistently advocated. “Diversification succeeds only when farmers find it economically rewarding; better market returns, improved technology, assured procurement, quality seeds and effective extension services must work in tandem to encourage farmers to shift towards oilseed cultivation,” he added.
Outlook
With global palm oil diversion to biodiesel, monsoon risks, and a weaker rupee, India’s edible oil import bill is set to hit a record ₹1.75 lakh crore. The SEA’s projection underscores the urgency of reducing import dependence through domestic production growth and crop diversification. Traders and procurement teams will watch the August–September rainfall and kharif sowing updates closely for price direction in palm, soybean, and sunflower oils.
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