India's edible oil imports rose 3% to 166.51 lakh tonnes in the 2025-26 fiscal year, driven largely by a sharp jump in duty-free imports from Nepal, according to the Solvent Extractors' Association of India (SEA). Imports had stood at 161.82 lakh tonnes in the prior fiscal year. Nepal, which enjoys zero-duty access to Indian markets under the South Asian Free Trade Area (SAFTA) agreement, exported 7.36 lakh tonnes of edible oils to India during the year, more than double the 3.45 lakh tonnes shipped in the previous fiscal, representing a 113% rise. As reported by The Hindu BusinessLine, refined soybean oil made up the bulk of Nepal's exports to India, with smaller volumes of sunflower oil, RBD Palmolein and rapeseed oil also traded.
Higher global edible oil prices and tighter import supplies are creating positive momentum for India's domestic oilseed sector, particularly benefiting mustard oil production. According to Sanjeev Asthana, President of the Solvent Extractors' Association of India (SEA), domestic edible oil prices are moving in tandem with imported oil prices, thereby supporting mustard prices. As reported by The Hindu BusinessLine, mustard prices are currently ruling around ₹7,000 per quintal against the minimum support price (MSP) of ₹6,200 per quintal.
April 2026 witnessed a record crushing of nearly 16 lakh tonnes (lt) of rapeseed-mustard, helping strengthen domestic edible oil availability while supporting better farmer realisations. According to SEA's monthly report, this achievement is benefiting farmers through improved incomes and simultaneously reducing the Government's burden relating to MSP procurement, storage, and carrying costs. The present trend is creating a positive situation for farmers, industry, and the overall edible oil economy.
Sunflower seed is showing strengthening price alignment with MSP support, with the Government increasing MSP to ₹8,343 per quintal in 2026-27 from ₹7,721 per quintal in 2025-26, marking an increase of ₹622 per quintal. As reported by The Hindu BusinessLine, the second all-India castor crop estimate by SEA for the 2025-26 season has reported production at 17.16 lt, higher than last year's production of 15.90 lt. Acreage under castor has increased by around 3 per cent to 8.90 lakh hectares, while productivity improved to 1,928 kg per hectare.
The final crop estimates for rapeseed-mustard show total production estimated at 117.6 lakh tonnes in 2025-26 compared to 115.2 lakh tonnes last year. According to SEA's assessment, sustained price realisations and improving market sentiment may encourage farmers to expand oilseed acreage during the upcoming kharif season, supporting domestic production growth over the longer term. However, India remains heavily dependent on overseas supplies, with domestic production meeting only around 40% of total edible oil requirements. As reported by The Hindu BusinessLine, low oilseed yields, fragmented landholdings, limited irrigation and a policy tilt toward wheat and rice cultivation have constrained domestic output growth, making the SAFTA arrangement particularly significant for maintaining import affordability.
