More Stories

Informist, Friday, Aug. 21, 2026

MUMBAI – India's soybean oil imports may touch a record 620,000 tonnes in August, driven by competitive global prices, robust domestic demand, and disruptions in sunflower oil shipments due to the Russia-Ukraine war, said Sanjeev Asthana, president of the Solvent Extractors' Association of India.

 

Imports of soybean oil in August could be nearly 46% higher than the current marketing year's monthly average of 425,000 tonnes, according to trade estimates cited in a letter by him to members of the association. The shift comes as sunflower oil supplies face disruptions and palm oil competes for market share, making soybean oil the preferred alternative for Indian buyers, he said in the letter.

 

Asthana said India's dependence on edible oil imports remains significant despite efforts to boost domestic oilseed production. During Nov-Jul of the current oil year, total vegetable oil imports rose 5% on year to 12.15 million tonnes, while edible oil imports increased to 11.92 million tonnes from 11.35 million tonnes a year ago.

 

The association highlighted concerns over soybean acreage, which declined to 12.08 million hectares from 12.26 million hectares a year earlier amid El Nino-related weather concerns. Total kharif oilseed acreage as of Aug. 14 stood marginally lower at 18.45 million hectares compared with 18.54 million hectares a year ago.

 

The letter also flagged the Reserve Bank of India's observations on diversion of edible oils towards biofuel production, saying growing use of vegetable oils in biodiesel could tighten global supplies and keep international edible oil prices elevated. Such a trend could raise India's import bill, domestic edible oil prices and food inflation.

 

On trade, Asthana said edible oil imports rose sharply from 1.11 million tonnes in June to 1.48 million tonnes in July, supported by higher palm oil and soybean oil purchases ahead of the festive season.

 

During Apr–May, edible oil exports stood at 41,438 tonnes valued at 7.21 billion, compared with 49,100 tonnes worth 7.07 billion a year earlier. Volumes declined 16% and export value increased nearly 2%, suggesting better value realisation.

 

The association also expressed concern about rising imports of refined edible oils from Nepal. During Nov-May, Nepal exported around 393,000 tonnes of refined oils to India, mainly refined soybean oil, with shipments continuing strongly in June and July. SEA said the trade flow deserves close monitoring for its implications on India's domestic refining industry.

 

Separately, the SEA president highlighted the potential of rice bran oil production. India currently produces around 1.1 million tonnes of rice bran oil against a potential output of about 2.3 million tonnes, leaving nearly 1.2 million tonnes of potential capacity, the association said.  End

 

Reported by Khushi Singh

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.