IVPA Highlights Structural Shift in India’s Edible Oil Imports, Calls for Strengthening Domestic Refining and Oilseed Production
10 November 2025, New Delhi: The Indian Vegetable Oil Producers’ Association (IVPA) has noted a significant transformation in India’s edible oil import patterns, driven by evolving market dynamics, global supply shifts, and consumer preferences. Reacting to the recent India Ratings & Research report titled “Soybean Oil Imports to Rise in OY25; Palm Oil Prices Might Soften in 2026, but Upside Risk from Indonesia’s Biofuel Blending,” IVPA emphasized the need for policy measures to support the domestic refining sector and enhance self-reliance in edible oils.
According to IVPA, while palm oil continues to form the backbone of India’s edible oil imports—remaining steady at around 7–8 million tonnes annually—imports of soybean oil have climbed from roughly 3.5 million tonnes to 5 million tonnes, and sunflower oil from 2.5 million tonnes to nearly 3.5 million tonnes in recent years. These changes, the association said, are reflective of shifting trade economics and consumer preferences in the Indian market.
Global price trends have played a pivotal role in shaping this shift. Palm oil prices have remained high due to tighter supplies from Indonesia and Malaysia, where biodiesel blending mandates and weather challenges have limited export availability. Meanwhile, soybean and sunflower oils have presented relatively stable prices and diversified sourcing opportunities—from South America, the Black Sea region, and elsewhere—allowing Indian refiners greater flexibility in managing costs and mitigating volatility.
IVPA also flagged concerns over the rising inflow of refined soybean oil from Nepal under duty-free provisions of the SAFTA and the India–Nepal Trade Treaty. The association warned that such imports are creating an uneven playing field for Indian refiners, as refined oil entering at zero duty bypasses domestic refining. This has led to lower plant utilisation and shrinking margins, adversely affecting domestic investments, employment, and value addition in the refining sector.
On the consumer side, IVPA pointed to a steady rise in the preference for soft and blended oils, particularly among urban households and branded product manufacturers. Health perceptions, taste preferences, and marketing campaigns are influencing this trend, contributing to a more diversified edible oil consumption pattern in India.
“The way forward lies in strengthening India’s capacity across the edible oil value chain—right from oilseed production to refining and value addition,” the association said. It called for measures to enhance productivity in oil palm and other oilseed crops, improve seed quality, facilitate better market access for farmers, and ensure a fair and balanced trade structure that protects domestic industry while maintaining affordability for consumers.
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