The Solvent Extractors’ Association of India (SEA) has called for a major push towards domestic oilseed production, adoption of modern agricultural practices, and more mindful edible oil consumption as rising geopolitical tensions in West Asia continue to pressure global supply chains and import costs.
In a communication to industry members, SEA President Sanjeev Asthana warned that India’s heavy dependence on imported edible oils is becoming an economic and strategic concern amid global volatility.
“Prime Minister Modi’s appeal for mindful edible oil consumption is far more than a lifestyle suggestion — it carries serious economic and strategic weight,” Asthana said.
India imports nearly 60 per cent of its edible oil requirements, making the country highly vulnerable to fluctuations in global commodity prices, freight rates, and currency movements. During the 2024-25 marketing year ending October, India imported around 16 million tonnes of edible oils valued at nearly Rs 1.61 lakh crore.
Asthana said short-term interventions alone would not be sufficient to address the growing risks facing the sector.
“India’s long-term resilience depends on expanding domestic oilseed production, adopting modern agricultural practices, and building more conscious consumption habits. Tightening the belt today is far wiser than struggling with a preventable crisis tomorrow,” he noted.
According to industry estimates, India’s domestic oilseed production is projected at 409.98 lakh tonnes for the 2025-26 crop year (July-June).
The industry body also highlighted that global commodity and freight costs have risen sharply due to factors including El Niño-related weather disruptions, biodiesel mandates in Southeast Asia, and ongoing geopolitical instability in West Asia.
The depreciation of the rupee has further increased the landed cost of edible oil imports, adding pressure on India’s foreign exchange reserves and widening the import bill, the SEA said.
Amid continuing tensions in West Asia, the association has submitted a memorandum to concerned ministries outlining key industry concerns, including rising freight and insurance costs, supply chain disruptions, currency volatility, higher working capital requirements, and pressure on domestic edible oil prices.
The SEA has sought government measures such as freight support, priority berthing for edible oil vessels, export incentives for oilmeal shipments, and working capital assistance to help the sector manage the ongoing disruptions.