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India's soybean oil imports are projected to reach an unprecedented 6.20 lakh tonnes in August, driven by a combination of competitive international prices, robust domestic consumption, and ongoing disruptions to sunflower oil supplies stemming from the Russia-Ukraine conflict. This forecast comes from Sanjeev Asthana, President of the Solvent Extractors' Association of India (SEA). The anticipated import volume represents a significant increase, being nearly 46% higher than the current marketing-year monthly average of 4.25 lakh tonnes.
As the festive season approaches, soybean oil is increasingly becoming a preferred alternative in the Indian market. This shift is primarily due to the persistent constraints on sunflower oil availability and intense competition from palm oil for market share. However, this expected surge in imports also underscores growing concerns regarding India's increasing reliance on overseas supplies, particularly at a time when domestic soybean acreage and production are grappling with weather-related uncertainties.
According to data from the SEA, India's total Kharif oilseed acreage stood at 184.46 lakh hectares as of August 14, a marginal decrease from 185.36 lakh hectares recorded a year prior. Specifically, soybean acreage saw a decline to 120.84 lakh hectares from 122.61 lakh hectares. In contrast, other oilseeds such as groundnut, sesame, and sunflower registered gains in cultivated area, while castor acreage experienced a sharper reduction.
Mr. Asthana emphasized that the focus for policymakers must now shift beyond mere acreage figures to critical factors such as crop condition, yields, prevailing weather patterns, and farmer returns. This comprehensive assessment is crucial for determining India's ability to enhance its domestic oilseed and edible oil balance by the 2026-27 period.
He further highlighted the Reserve Bank of India's concerns regarding the diversion of edible oils from food consumption to fuel production. The increasing global utilization of palm oil and other vegetable oils for biodiesel purposes could potentially diminish export availability and structurally maintain firm international edible oil prices. For India, such a scenario would translate into a higher import bill and exert increased pressure on domestic prices, consequently contributing to food inflation.
In a bid to bolster domestic oil production, Mr. Asthana advocated for greater utilization of rice bran oil. With paddy production estimated at approximately 230 million tonnes and rice output at 154 million tonnes for 2025-26, India possesses the potential to produce around 2.3 million tonnes of rice bran oil. However, current production stands at only about 1.10 million tonnes. To bridge this significant gap, the SEA has put forth several recommendations, including modernizing rice mills, improving bran stabilization techniques, supporting research initiatives, addressing GST-related issues, and developing robust value-chain infrastructure.
India's structural dependence on imports is further evidenced by recent trade data. Vegetable oil imports during the November 2025-July 2026 period surged by 5% to 121.50 lakh tonnes, with edible oil imports specifically reaching 119.23 lakh tonnes. In July alone, edible oil imports saw a sharp increase to 14.81 lakh tonnes from 11.11 lakh tonnes in June. This July figure included 7.19 lakh tonnes of palm oil and 4.98 lakh tonnes of soybean oil.
Conversely, edible oil exports experienced a 16% decline in volume during April-May 2026, totaling 41,438 tonnes, although their value marginally rose by nearly 2% to Rs 720.85 crore. Oilseed exports amounted to 1.52 lakh tonnes, while imports in this category surged to 4.31 lakh tonnes, notably including 4.13 lakh tonnes of soybean seed.
Providing some relief, oilmeal exports rose by 19% year-on-year in May to 3.74 lakh tonnes. Nevertheless, total April-May exports for oilmeal remained 5.3% lower at 7.39 lakh tonnes, primarily attributed to prevailing freight challenges and intense global competition.
Source: RuralVoice