India's Edible Oil Economy

India is the world's largest importer of edible oils, spending over $20 billion annually on imports (2023–24). Palm oil constitutes over 56% of this import basket, with Indonesia and Malaysia supplying over 90% of India's palm oil. The heavy dependence creates a structural vulnerability: price shocks, supply disruptions (as with the West Asia crisis affecting shipping lanes), or export restrictions by source countries directly impact domestic edible oil prices, which are politically and economically sensitive.

The National Mission on Edible Oils – Oil Palm (NMEO-OP), launched in August 2021 with an outlay of over ₹11,040 crore, aims to expand domestic palm oil cultivation to 10 lakh hectares in the North-East and Andaman & Nicobar Islands, with price support mechanisms for farmers. However, domestically produced palm oil remains a fraction of demand — making import substitution through alternative oils like coconut oil a complementary strategy.