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India's Edible Oil Economy

Production, Imports, and Policy

India is the world's second-largest consumer and largest importer of edible oils. Domestic production meets only approximately 40-45% of demand, creating a structural import dependency that has persisted for decades. The key imported oils are palm oil (from Indonesia and Malaysia), soybean oil (from Argentina, Brazil, and the US), and sunflower oil (from Ukraine and Russia). Government policy oscillates between consumer protection (low import duties to control food inflation) and farmer protection (higher duties to incentivize domestic oilseed cultivation).

Key details

India's edible oil consumption: approximately 25-27 million tonnes annually
Domestic production: approximately 9.6 million tonnes (2025-26 estimate); imports: approximately 16-17 million tonnes
Palm oil: approximately 37% of consumption; soybean oil: approximately 20%; mustard: approximately 14%; sunflower: approximately 13%
Major import sources: Indonesia and Malaysia (palm oil), Argentina and Brazil (soybean oil), Ukraine and Russia (sunflower oil)
Tariff history: BCD on crude edible oils was reduced to 0% during COVID-19 (2021-22), raised to 20% in September 2024, then reduced to 10% in May 2025
Current effective duty: crude oils approximately 16.5% (10% BCD + 5% AIDC + SWS); refined oils approximately 35.75%
National Mission on Edible Oils-Oilseeds (NMEO-OS, October 2024): Rs 10,103 crore, targeting 69.7 MT oilseed production by 2030-31
National Mission on Edible Oils-Oil Palm (NMEO-OP, August 2021): Rs 11,040 crore, focusing on oil palm in NE India and A&N Islands
Per capita edible oil consumption: approximately 23.5 kg/year (ICMR-recommended limit: 12 kg/year)