India’s oilseed sector is witnessing strong production gains this year, yet the country’s edible oil import bill continues to climb—highlighting persistent structural challenges in domestic oilseed cultivation and market alignment. In a communication to stakeholders, Solvent Extractors’ Association of India President Sanjeev Asthana outlined key concerns and urged closer coordination between the government and industry.
According to the Government’s final production estimates for 2024–25, India’s oilseed output has reached a record 429.89 lakh tonnes, up 32.20 lakh tonnes from last year. Soybean production is estimated at 152.68 lakh tonnes, while groundnut output has risen to 119.42 lakh tonnes, both registering double-digit growth. “While higher production would typically help moderate import demand, current edible oil import levels have not yet shown a corresponding decline. This underscores the importance of continued collaboration between the government and industry for crop estimation to ensure better market alignment and planning,” Asthana noted in the letter.
Data released by the Ministry of Agriculture shows that as of 21 November, oilseed acreage under Rabi crops has increased by over 3 lakh hectares, reaching 76.64 lakh hectares against the normal 86.78 lakh hectares. Mustard acreage alone has expanded by 4.22 lakh hectares, driven by favourable market prices. If weather conditions remain supportive, an 8–10 lakh tonne increase in mustard output is expected.
Despite these positive indicators, India still imports nearly 60% of its edible oil requirement. Imports remain around last year’s level of 160 lakh tonnes, but the import bill has surged from Rs 1.31 lakh crore to Rs 1.61 lakh crore (US$18.3 billion). “This is a cause of concern for both the Government and the industry, as our import dependence has not reduced while the import bill has risen sharply,” Asthana stated.
He further cautioned that the existing MSP structure for rice and wheat continues to divert farmers away from oilseed cultivation. Despite the recent hikes in MSP for oilseeds, more judicious calibration of MSPs is urgently required.
Industry representatives also noted that recent policy steps, such as increasing the duty difference between crude and refined oils from 8.25% to 19.25%, have effectively curbed imports of RBD palm oil. However, a new challenge has emerged with large volumes of refined soybean and sunflower oil entering India duty-free from Nepal under the SAFTA framework. The Association has urged Commerce Minister Piyush Goyal to channelize these imports through NAFED or other government agencies to prevent market distortions.
The SEA has also called for the reintroduction of weekly sowing update data on various crops, including oilseeds, under the “All India Crop Situation” section on the Agriculture Ministry’s website. The practice, discontinued last year, was widely used by oil meal manufacturers, vegetable oil importers, and exporters to assess crop conditions and make informed decisions related to trade.