Building a resilient Edible Oil Seed ecosystem with long-term strategic goals.

India is a major producer of oilseeds, but its average yield is much lower than the global standard. In order to meet its domestic demand, India imports edible oil at a cost of around $16 billion a year. The industry can achieve sustainable growth and adjust to a constantly shifting global environment with careful planning and focused execution.

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Based on recent industry data, India’s oilseed and vegetable oil sector is a key component of its agricultural economy, driven by rising demand and strategic import management. India is the world’s largest importer of edible oils, sourcing nearly 14 million tonnes annually, including palm, soybean, and sunflower oils. Despite being a top oilseed producer, India’s average oilseed yield is significantly lower than the global benchmark, with soybean yields at approximately 1.3 tonnes per hectare, compared to the global average of 2.7-3.0 tonnes.

Key crops like rapeseed, soybean, and groundnut dominate the sector. Recent government interventions, such as increasing import duties and boosting oilseed Minimum Support Prices (MSPs), aim to enhance domestic production and farmer income. These measures are crucial as India spends nearly $16 billion annually on edible oil imports .

India’s vegetable oil sector faces a complex landscape shaped by rising domestic demand, global market fluctuations, and the strategic goal of achieving self-reliance. With 60–65 per cent of its edible oil consumption dependent on imports, the country remains exposed to supply chain disruptions, price volatility, and geopolitical uncertainties.