SEA expects India’s edible oil imports to increase in 2026

Despite a sharp decline in edible oil imports in June, India’s total imports in 2026 are expected to exceed last year’s level. This was stated by Dr. B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA). According to him, although June imports fell by nearly 30%, cumulative imports since the beginning of the year remain about 7% higher than during the same period last year.

SEA expects India’s edible oil imports to exceed 16 mln tons this year. The main reason is growing concern over the Kharif oilseed crop due to the uneven progress of the monsoon, significantly lower planted area compared to last year, and forecasts for weaker rainfall during the critical August–September period. Lower reservoir levels could also negatively affect the upcoming Rabi season.

According to Dr. Mehta, high domestic oilseed prices encouraged farmers to sell more oilseeds, supporting higher crushing volumes and ensuring adequate domestic vegetable oil supplies during the first half of the year. However, domestic oil availability is expected to decline between July and September, making higher imports necessary to fill the supply gap.

On the global market, palm oil remains competitively priced. However, Indonesia’s B50 biodiesel mandate is expected to divert larger volumes of palm oil toward biofuel production, reducing supplies available for the food market and supporting global vegetable oil prices.

SEA also stressed that stable and remunerative prices are essential not only for consumers but also for farmers. According to Dr. Mehta, maintaining profitable returns for oilseed producers is necessary to encourage further investment in oilseed cultivation and improve crop productivity.

Tags: India, imports, edible oils