India could increase imports of food, animal feed and agricultural raw materials in the 2026–27 financial year as drought conditions threaten domestic crop production and push up costs for several industries. Shortages of oilseeds, rising poultry feed prices and concerns over supplies of key agricultural commodities are prompting industry bodies to seek easier import rules.
The impact of adverse weather is being felt across several farming regions, with soybean and groundnut production facing particular pressure. The situation has also raised concerns about the upcoming mustard crop, which will play an important role in determining India’s edible oil import requirements.
According to estimates from the Solvent Extractors’ Association of India, kharif groundnut production could decline by more than 20% this year. Soybean supplies are also expected to remain tight, following last year’s crop damage from excessive rainfall and the current drought affecting parts of Maharashtra, Telangana and Madhya Pradesh.
The pressure on domestic oilseed production could further increase India’s dependence on imported edible oils. Sandeep Bajoria, chief executive officer of commodity brokerage firm Sunvin Group, expects overall edible oil imports to rise from 16.5 million tonnes in 2025–26 to 17.5 million tonnes in 2026–27.
He said the final import requirement would depend partly on mustard production, which remains an important factor in assessing the country’s domestic edible oil availability.
The poultry industry is also seeking government permission to import soybean meal and maize to control feed costs. These ingredients account for around 80% of poultry feed, making their prices a major factor in the economics of chicken and egg production.
Divya Kumar Gulati, former president of the Compound Livestock Feed Manufacturers Association, said the industry had requested permission to import 30 lakh tonnes of soybean meal. He warned that continued high feed prices could hurt poultry farmers and disrupt the economics of production.
The concerns come as soybean shortages and higher maize prices put pressure on livestock feed manufacturers. Any sustained increase in feed costs could eventually affect poultry prices, adding to the burden on consumers.
The sugar industry has also secured an extension for raw sugar imports, while textile manufacturers are seeking the removal of import duties on cotton to ease pressure on domestic supplies and costs.
Meanwhile, the starch industry is concerned that greater diversion of maize towards ethanol production could reduce the availability of the grain for industrial use. If domestic supplies tighten further, manufacturers may need to increase starch imports from China.
India’s agricultural outlook faces another uncertainty from the potential effects of El Niño, a climate phenomenon associated with changes in rainfall and temperature patterns. Weak or uneven monsoon conditions can affect crop yields, although the impact varies by region and crop.
The latest developments underline the vulnerability of industries that depend on agricultural commodities, from edible oil processors and poultry producers to textile and starch manufacturers. Import flexibility could help bridge domestic supply gaps, but greater dependence on overseas markets would also expose Indian businesses to international price movements and currency fluctuations.
For consumers, the key concern is whether reduced domestic production will translate into higher prices for cooking oils, poultry and other essential food products. With the winter mustard harvest still to come, the extent of India’s import requirements will depend on how domestic crops perform in the months ahead.