India’s soybean oil imports could surge to a record 6.20 lakh tonnes in August, driven by competitive international prices, strong domestic demand and disruptions in sunflower oil supplies amid the Russia-Ukraine conflict, according to Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA). The projected imports would be nearly 46% higher than the current marketing-year monthly average of 4.25 lakh tonnes.
With the festive season approaching, soybean oil is emerging as a preferred alternative as sunflower oil availability remains constrained and palm oil competes for market share. However, the expected surge in imports has also highlighted concerns over India’s growing dependence on overseas supplies at a time when domestic soybean acreage and production face weather-related uncertainties.
According to SEA, India’s total Kharif oilseed acreage stood at 184.46 lakh hectares as of August 14, marginally below 185.36 lakh hectares a year ago. Soybean acreage declined to 120.84 lakh hectares from 122.61 lakh hectares, while groundnut, sesame and sunflower recorded gains. Castor acreage witnessed a sharper decline.
Asthana said the focus must now shift from acreage to crop condition, yields, weather and farmer returns to determine whether India can improve its domestic oilseed and edible oil balance in 2026-27.
He also highlighted the Reserve Bank of India’s concerns over the diversion of edible oils from food to fuel. Rising global use of palm oil and other vegetable oils for biodiesel could reduce export availability and keep international edible oil prices structurally firm. For India, this could translate into a higher import bill and increased pressure on domestic prices and food inflation.
He also called for greater utilisation of rice bran oil. With paddy production estimated at around 230 million tonnes and rice output at 154 million tonnes in 2025-26, India could potentially produce about 2.3 million tonnes of rice bran oil. Current production, however, is only around 1.10 million tonnes. SEA has suggested modernising rice mills, improving bran stabilisation, supporting research, addressing GST-related issues and developing value-chain infrastructure to bridge the gap.
India’s structural dependence on imports is further reflected in trade data. Vegetable oil imports during November 2025-July 2026 rose 5% to 121.50 lakh tonnes, while edible oil imports increased to 119.23 lakh tonnes. In July alone, edible oil imports rose sharply to 14.81 lakh tonnes from 11.11 lakh tonnes in June, including 7.19 lakh tonnes of palm oil and 4.98 lakh tonnes of soybean oil.
Meanwhile, edible oil exports declined 16% in volume during April-May 2026 to 41,438 tonnes, but their value rose nearly 2% to Rs 720.85 crore. Oilseed exports stood at 1.52 lakh tonnes, while imports surged to 4.31 lakh tonnes, including 4.13 lakh tonnes of soybean seed.
Oilmeal exports provided some relief, rising 19% year-on-year to 3.74 lakh tonnes in May, although April-May exports remained 5.3% lower at 7.39 lakh tonnes amid freight challenges and global competition.