India's edible oil imports increased by 3% to 166.51 lakh tons during April 2025 to March 2026, compared to 161.82 lakh tons in the previous year, according to data released by the Solvent Extractors Association of India (SEA). This growth occurred despite facing challenges from higher international edible oil prices and sharp depreciation of the Indian Rupee against the US Dollar. As reported by The Hindu BusinessLine, the increase demonstrates India's continued reliance on imported edible oils to meet domestic demand, with the 3% increase in total imports demonstrating the country's ability to maintain adequate supply levels despite challenging market conditions.
A major contributor to the overall increase was the sharp rise in imports from Nepal under the SAFTA arrangement, which provides zero-duty access for Nepal's refined edible oil exports to India. According to the SEA data, Nepal exported 7.36 lakh tons of edible oils to India during April 2025 to March 2026, representing a dramatic increase from 3.45 lakh tons in the previous year. This 113% surge in Nepalese imports significantly boosted overall import volumes, with refined soybean oil constituting the major share of imports from Nepal along with smaller quantities of sunflower oil, RBD palmolein and rapeseed oil. As per The Hindu BusinessLine, BV Mehta, Executive Director of SEA, noted that had zero-duty imports under SAFTA not been available to Nepal, India's overall edible oil imports during 2025-26 would likely have remained below last year's level despite rising domestic demand.
India continues to remain structurally dependent on edible oil imports as domestic production fulfils only around 40% of total requirement. According to SEA data cited by The Hindu BusinessLine, low oilseed productivity, fragmented landholdings, inadequate irrigation facilities and policy preference towards wheat and rice cultivation continue to restrict growth in domestic oilseed production. The association emphasizes that strengthening domestic oilseed production, improving productivity and encouraging value addition within the country remain essential for reducing long-term dependence on edible oil imports and ensuring stability in the domestic edible oil sector.
Prime Minister Shri Narendra Modi's recent appeal for moderation in edible oil consumption assumes significance in this context, as reducing excessive consumption alongside increasing domestic production would help lower import dependence, reduce pressure on foreign exchange outgo and improve India's long-term edible oil security amid rising global supply uncertainties. The surge in duty-free imports of refined oils from Nepal substantially contributed to the increase in India's total edible oil imports during the year, highlighting the strategic importance of preferential trade agreements in managing import costs and ensuring stable supply chains for essential commodities.
