India to import 17 MT edible oil in 25-26

India’s edible oil production in the 2025-26 marketing year is estimated at 9.6 million tonnes, while imports are expected to touch about 16.7 million tonnes to meet domestic demand, according to the Indian Vegetable Oil Producers’ Association (IVPA).

Addressing an industry conference in Kuala Lumpur, IVPA President Sudhakar Desai said India continues to rely heavily on overseas markets, with nearly 60 per cent of its edible oil requirement met through imports. The oil year runs from October to September.

Desai noted that global edible oil markets are witnessing heightened volatility due to shifting trade alignments, biofuel mandates and supply-side rigidity. He said geopolitical changes have altered traditional trade routes, making prices highly sensitive to even minor policy or duty changes. Small shifts in import duties or mandates are now triggering disproportionate price swings across supply chains, he added.

India mainly imports palm oil from Malaysia and Indonesia, while soybean oil is sourced largely from Argentina and Brazil. In 2025-26, imports are expected to include 8–8.5 million tonnes of palm oil, 5–5.5 million tonnes of soybean oil, 2.8–3 million tonnes of sunflower oil and around 2 lakh tonnes of other oils, including zero-duty imports routed through Nepal.

According to the Solvent Extractors’ Association of India, the country imported about 16 million tonnes of edible oils worth nearly Rs 1.61 lakh crore during 2024-25.

Desai also pointed out that India’s import basket remains extremely sensitive to price differences between oils, especially palm and soybean oil, while refining margins remain under pressure. Recently concluded free trade agreements with major partners are now playing a key role in determining landed costs and sourcing strategies, he said.