India's Oil Imports Surge: 16.7M Tonnes Needed by 2026

India's edible oil imports are forecasted to reach approximately 16.7 million tonnes in the 2025-26 marketing year. This substantial volume is necessary because domestic production is estimated at only 9.6 million tonnes, meeting just 40% of the nation's demand. Consequently, India will continue to rely on importing about 60% of its cooking oil requirements.

The global edible oil market is undergoing "structural volatility," according to the Indian Vegetable Oil Producers' Association (IVPA). Factors such as trade realignments, biofuel mandates, and rigid supply chains are contributing to this instability. Geopolitical changes are also altering global trade corridors, making edible oil prices highly sensitive to even minor adjustments in duties or trade flows.

For the 2025-26 period, imports are expected to include 8-8.5 million tonnes of palm oil, 5-5.5 million tonnes of soyabean oil, and 2.8-3 million tonnes of sunflower oil. India primarily sources soyabean oil from Argentina and Brazil, and palm oil from Malaysia and Indonesia. The import basket's sensitivity to price differences, especially between palm and soybean oil, can lead to significant volume shifts.