India must significantly improve oilseed crop yields and tap the potential of cottonseed oil, rice bran oil, and other alternatives to reduce edible oil imports, according to Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA). In his monthly letter to members on Wednesday, Asthana noted that while India is expected to produce a record 43.06 million tonnes of oilseeds in 2025-26—led by rapeseed-mustard, groundnut, and soybean—the country still imports nearly 60% of its edible oil requirements. With population growth, rising incomes, and changing consumption patterns, edible oil demand continues to climb.
Import Dependence and the Import Bill
Despite record domestic output, import dependence remains high. Asthana stated that the current edible oil import bill stands at $18-19 billion and could rise further unless domestic production improves. “The reality is simple: import dependence can be reduced by increasing domestic production and productivity. If India aims to reduce imports to around 9.5-10 million tonnes by 2030, we must significantly improve yields while tapping the potential of cottonseed oil, rice bran oil and other alternative resources. Otherwise, the current edible oil import bill of $18-19 billion may continue to rise,” he said.
Roadmap for Self-Resilience
Asthana outlined SEA's recommendations submitted to A. Ganesh Kumar, Chairman of the Commission for Agricultural Costs and Prices (CACP), focusing on:
- Launching a focused National Oilseeds Mission
- Accelerating crop diversification
- Aligning minimum support prices (MSP) with productivity and diversification goals
- Aggressive technology investment
The success of SEA-Solidaridad’s 3,000 mustard model farms has demonstrated that productivity gains are measurable and scalable. Asthana urged nationwide replication of such models.
Oilmeal Exports and New Markets
On oilmeal exports, Asthana noted that geopolitical tensions, higher freight costs, and logistical disruptions adversely affected exports in 2025-26. However, new opportunities emerged:
| Market | Development |
|---|---|
| China | Became the largest buyer of Indian rapeseed meal, witnessing exceptional growth |
| South Korea | Strengthened position as a major importer of castor, rapeseed, and soybean meals |
| Bangladesh | Exports declined |
| Kenya, Germany, Nepal, France | Expanded purchases |
Asthana stressed that India’s competitiveness must rest on productivity, quality, and reliability, not exchange rate advantages.
Weather and Policy Risks
On the sustainability front, discussions on biotechnology and genetically modified crops continue, with all stakeholders sharing the common objective of enhancing domestic production while safeguarding sustainability, farmer welfare, and consumer confidence. Weather risks remain a concern: monsoon rainfall is projected at around 90% of the Long Period Average, making August and September critical months for flowering and pod formation in oilseed crops. Any disruption could affect both kharif and subsequent rabi production, Asthana warned.
With import dependence at 60%, India’s push for self-resilience hinges on yield improvements, policy alignment, and favorable weather. For commodity traders, the record domestic output may pressure local prices, but the persistent import gap signals sustained global sourcing demand. The monsoon outlook and government policy decisions will be key to watch for supply adjustments in 2026-27.
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