Edible oil market today should be viewed through the lens of the “food–feed–fuel” nexus

The edible oil market can no longer be seen purely as a food segment, as it is increasingly interconnected with the feed and fuel markets. Rising energy prices are directly affecting oil values due to the diversion of raw materials into the biofuel sector, said Bhavna Shah, Vice President of the Indian Vegetable Oil Producers’ Association (IVPA), during her speech at the BLACK SEA GRAIN.KYIV-2026 conference.

According to her, India’s edible oil imports are gradually shifting from a price-driven model to a supply-driven one amid climate shocks, geopolitical tensions, and changes in energy markets. For 2026–2027, the key drivers will be weak monsoons, high crude oil prices, and growing global biofuel demand.

Shah noted that these factors will shape a moderately bullish market trend, although India is expected to remain relatively stable thanks to efficient supply chains, flexible imports, and timely policy interventions. At the same time, she warned of inflationary risks in the edible oil market due to weather and energy-related pressures.

She also emphasized that India remains a key global importer capable of absorbing surplus supplies. Meanwhile, the government continues to support domestic production through national oilseed development programs, investing in greater self-sufficiency and diversification of supply sources.

Tags: edible oils, compound feed, biofuel, prices, India