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Informist, Wednesday, Jul. 22, 2026

 

MUMBAI – India's edible oil import bill is projected to cross a record INR 1.75 trillion in the ongoing edible oil year ending October, as a weak rupee and higher global cooking oil prices are raising the cost of shipments, Solvent Extractors' Association of India said. This is nearly 9% higher than INR 1.61 trillion last year. 

 

"This is not merely another statistic; it represents a substantial outflow of precious foreign exchange that could otherwise be channelled into strengthening India's agricultural infrastructure," SEA said. So far, during Nov-Jun, India imported over 1.04 million tonnes of edible oil worth INR 1.19 trillion. 

 

Along with a weak rupee, higher freight and insurance costs, and expansion in biodiesel programmes, particularly in Indonesia, have raised the cost of importing edible oil. Indonesia is diverting large quantities of palm oil to blend it with diesel to produce biodiesel, tightening global edible oil supplies. "The net effect is that India may be compelled...to pay considerably more for every tonne," SEA said. 

 

DOMESTIC OUTPUT

Meanwhile, domestic edible oil production is also under stress amid below-normal monsoon forecasts and delayed oilseed sowing in several growing regions. "Groundnut, soybean and sunflower sowing has lagged behind last year's pace, and overall oilseed acreage has remained substantially lower as on 17th July," SEA said, adding that oilseed acreage was down nearly 6% on year at 14.7 million hectares. 

 

Along with acreage concerns, SEA also flagged worries over the crop's growth and yield. "The possibility of weaker rainfall during the critical August–September flowering period, which could adversely affect oilseed yields and further deplete reservoir levels, with implications for the forthcoming rabi season as well," SEA said.

 

Hoping rainfall improves in the coming months, the association said delayed sowing need not necessarily result in lower production. "Historically, acreage has caught up once rainfall improves. The coming weeks will therefore be decisive in determining whether Kharif 2026 regains momentum, or whether India faces yet another year of heightened import dependence," the association said.  End

 

US$1 = INR 96.52

 

Reported by Afra Abubacker

Edited by Himanshi Gupta

 

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