Hard to digest: How edible oils are swelling India's import bill
India imports 55–57 per cent of its edible oil consumption, making it vulnerable to global disruptions.
Amid the ongoing Middle East war, Prime Minister Narendra Modi urged citizens to reduce their consumption of fuel and gold — and edible oils. His rationale? “We have to spend foreign currency on its import. If every household reduces the use of edible oil, it is a huge contribution to patriotism. This will improve the health of the national treasury and the health of every family member.”
Edible oils are one of India’s largest recurring import burdens. Import dependence has consistently remained higher than domestic production, with imports accounting for nearly 55–57 per cent of the country’s edible oil requirement over the past five years.
With per capita edible oil consumption estimated at nearly 20 kilograms annually, the gap between domestic production and demand has widened steadily, increasing reliance on imports.
India sources large quantities of palm oil from Indonesia and Malaysia, and sunflower oil from Russia and Ukraine. India spent nearly $18.5 billion on edible oil imports in 2025, sharply higher than $10.4 billion in 2020. The import bill had earlier surged to a record $21 billion in 2022 after the Russia-Ukraine war and Indonesia’s temporary palm oil export ban disrupted global supplies, forcing India to spend more forex to secure essential edible oil imports.
Attempt to lower dependence
Unlike gold, edible oils remain a daily household necessity with few practical substitutes. This makes India especially vulnerable to fluctuations in global edible oil markets.
To lower dependence on imports, the government approved the National Mission on Edible Oils-Oilseeds in 2024. The seven-year mission, with an outlay of Rs 10,103 crore, aims to boost domestic edible oil production and reduce reliance on overseas supplies by 2030–31.
The programme focusses on expanding the production of major oilseed crops, including mustard, soybean, groundnut, and sunflower, while also improving oil extraction from secondary sources such as rice bran, cottonseed, and coconut.
Amid the ongoing Middle East war, Prime Minister Narendra Modi urged citizens to reduce their consumption of fuel and gold — and edible oils. His rationale? “We have to spend foreign currency on its import. If every household reduces the use of edible oil, it is a huge contribution to patriotism. This will improve the health of the national treasury and the health of every family member.”
Edible oils are one of India’s largest recurring import burdens. Import dependence has consistently remained higher than domestic production, with imports accounting for nearly 55–57 per cent of the country’s edible oil requirement over the past five years.
With per capita edible oil consumption estimated at nearly 20 kilograms annually, the gap between domestic production and demand has widened steadily, increasing reliance on imports.
India sources large quantities of palm oil from Indonesia and Malaysia, and sunflower oil from Russia and Ukraine. India spent nearly $18.5 billion on edible oil imports in 2025, sharply higher than $10.4 billion in 2020. The import bill had earlier surged to a record $21 billion in 2022 after the Russia-Ukraine war and Indonesia’s temporary palm oil export ban disrupted global supplies, forcing India to spend more forex to secure essential edible oil imports.
Attempt to lower dependence
Unlike gold, edible oils remain a daily household necessity with few practical substitutes. This makes India especially vulnerable to fluctuations in global edible oil markets.
To lower dependence on imports, the government approved the National Mission on Edible Oils-Oilseeds in 2024. The seven-year mission, with an outlay of Rs 10,103 crore, aims to boost domestic edible oil production and reduce reliance on overseas supplies by 2030–31.
The programme focusses on expanding the production of major oilseed crops, including mustard, soybean, groundnut, and sunflower, while also improving oil extraction from secondary sources such as rice bran, cottonseed, and coconut.
