India may increase edible oil imports to 17 mln tons in MY 2026/27

India may increase edible oil imports by around 3% to 17 mln tons in the MY 2026/27, which begins in November. Market participants estimate that imports will reach around 16.5 mln tons in the current MY 2025/26, compared with 16.01 mln tons in 2024/25.

Imports are expected to rise despite an increase in oilseed acreage. The main risk to domestic production is a rainfall deficit, which could reduce yields. In addition, the outlook for the rabi crop remains uncertain due to the potential impact of El Niño.

According to India’s Ministry of Agriculture, the total area planted with oilseeds stood at 19.66 mln ha as of October 2, compared with 19.63 mln ha a year earlier. Soybean acreage declined by 14 thsd ha to 12.3 mln ha, while groundnut acreage increased by 1 thsd ha to 5.1 mln ha. Sunflower acreage rose by 59 thsd ha to 129 thsd ha.

Growing domestic consumption is another factor driving imports. According to Crisil Ratings, edible oil consumption increased from 22.8 mln tons in FY2022 to an estimated 25.7 mln tons in FY2026 and could reach 26.5 mln tons in FY2027. Demand is supported by population growth, urbanisation, changing dietary habits and the expansion of the food-service sector.

India currently relies on imports to meet around 60–65% of its edible oil requirements. B.V. Mehta, executive director of the Solvent Extractors’ Association of India (SEA), said the country needs an additional 800–1,000 thsd tons of oil annually to meet growing demand. Under these conditions, even higher domestic production may not be enough to reduce dependence on overseas supplies.

Tags: edible oils, India, imports