India’s edible oil import bill jumps 19% in H1 of oil year 2025-26, volumes rise over 13%

India's edible oil import bill rose 19% in the first half of oil year 2025-26 (November 2025–April 2026), climbing to approximately ₹87,000 crore from ₹73,00...

What Happened

India's edible oil import bill rose 19% in the first half of oil year 2025-26 (November 2025–April 2026), climbing to approximately ₹87,000 crore from ₹73,000 crore a year earlier.
Import volumes increased 13% to 7.94 million tonnes during the same period, with edible oils accounting for 7.82 million tonnes and non-edible oils for approximately 0.12 million tonnes.
Palm oil imports nearly doubled — rising from 2.74 million tonnes to 3.97 million tonnes — driven by supply-side shifts and price movements in the global market.
Total vegetable oil stocks rose to 2.12 million tonnes in May 2026, up from 1.35 million tonnes in May 2025, reflecting improved supply availability heading into the second half of the oil year.
The surge in import volumes occurred amid the ongoing West Asia crisis, which shifted sourcing patterns from purely price-driven buying to supply-driven procurement.

Static Topic Bridges

India's Edible Oil Import Dependence

India is the world's largest importer of edible oils, meeting approximately 55–60% of its domestic edible oil requirements through imports. Domestic production of oilseeds — primarily soybean, groundnut, mustard, and sunflower — covers only 40–45% of national demand. The three dominant imported oils are palm oil (from Indonesia and Malaysia), soybean oil (from Argentina and Brazil), and sunflower oil (from Ukraine and Russia). Palm oil alone accounts for approximately 55% of all edible oil imports by volume, making Indonesia and Malaysia the most critical supply partners.

Import dependence: approximately 55–60% of total domestic edible oil requirement
Annual import value in 2024-25: over ₹1.6 trillion
Top import sources: Indonesia/Malaysia (palm), Argentina/Brazil (soy), Ukraine/Russia (sunflower)
India's oil year runs November–October (not the calendar year)
Domestic oilseed production in 2022-23: ~39 million tonnes; edible oil derived: ~11–12 million tonnes

Connection to this news: The 19% jump in import bill and 13% rise in volumes directly reflects the structural gap between India's domestic oilseed production and consumption demand, a persistent challenge the government is attempting to address through dedicated national missions.

Customs Tariff Structure for Edible Oils

Edible oil imports attract a layered customs duty structure under the Customs Tariff Act, 1975: Basic Customs Duty (BCD), Social Welfare Surcharge (SWC) calculated on BCD, and Integrated GST (IGST). The government periodically adjusts BCD rates on edible oils — both upward (to protect domestic farmers) and downward (to contain retail prices) — using Section 8A of the Customs Tariff Act, 1975, which allows the Central Government to change import duty rates through notification. Historically, duty rates have been reduced sharply during periods of high import prices to ease inflationary pressure on consumers.

Customs Tariff Act, 1975: governs import duty structure
BCD on crude palm oil has been varied between 0% and 100% over the past decade based on price conditions
SWC: 10% of BCD
IGST on edible oils: 5%
Duty reductions are a key policy tool to manage domestic retail prices during supply shocks

Connection to this news: The 19% increase in import bill despite only a 13% volume increase indicates that global prices for edible oils (particularly palm) rose over the period, illustrating how tariff management and global price trends together determine India's import costs.

National Missions to Reduce Edible Oil Import Dependence

The government has launched two complementary missions to achieve edible oil self-sufficiency:

NMEO-OP (National Mission on Edible Oils – Oil Palm): Approved in 2021 as a Centrally Sponsored Scheme with an outlay of ₹11,040 crore (Centre: ₹8,844 crore; States: ₹2,196 crore). It targets bringing 6.5 lakh hectares under oil palm cultivation by 2025-26 and increasing crude palm oil production to 28 lakh tonnes by 2029-30, with special focus on Northeast India and Andaman & Nicobar Islands.

NMEO-Oilseeds: Approved in 2024-25 for implementation from 2024-25 to 2030-31 with an outlay of ₹10,103 crore. Targets increasing primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. The combined target of both missions is to meet ~72% of domestic edible oil demand through domestic production by 2030-31.

NMEO-OP outlay: ₹11,040 crore; NMEO-Oilseeds outlay: ₹10,103 crore
Oil palm area target: 10 lakh hectares by 2025-26, 16.7 lakh hectares by 2029-30
Oilseed production target: 69.7 million tonnes by 2030-31
Import dependence target: reduce from ~55% currently to ~28% by 2030-31

Connection to this news: The 19% import bill surge underscores the urgency behind these missions; despite government investment, structural dependence on imports persists, keeping India vulnerable to global price shocks and currency depreciation.

Key Facts & Data

India's edible oil import bill in H1 oil year 2025-26: ~₹87,000 crore (up 19% YoY)
Total import volumes: 7.94 million tonnes (up 13% YoY); edible oils: 7.82 MT
Palm oil imports: doubled from 2.74 MT to 3.97 MT
India's edible oil import dependence: ~55–60% of domestic requirement
Vegetable oil stocks May 2026: 2.12 MT (vs 1.35 MT in May 2025)
India's oil year: November to October
Top import sources: Indonesia and Malaysia (palm), Argentina and Brazil (soybean), Ukraine and Russia (sunflower)
NMEO-Oilseeds financial outlay: ₹10,103 crore (2024-25 to 2030-31)
NMEO-OP financial outlay: ₹11,040 crore