Archive · 13 Nov 2025
India's Edible Oil Import Bill Reaches Record High Amidst Price Surges
India buys a lot of cooking oil from other countries, like palm, soybean, and sunflower oil.
Even though India didn't buy much more oil this past year, the cost of the oil it bought went up a lot, by about 20%.
This made the total amount of money spent on importing cooking oil a record high of over 1.6 lakh crore rupees.
This is because the prices of these oils around the world have increased significantly.
India now buys more soybean and sunflower oil compared to palm oil.
To help keep prices down for people in India, the government has also lowered the taxes it charges on importing these oils.
To make sure there's enough oil and prices are fair, the government is also asking companies to report their production and sales every month.
India's edible oil import bill surged by 22% to a record Rs 1.61 lakh crore in the 2024-25 oil year, primarily due to a 20% increase in global prices.
The volume of edible oil imports increased only marginally to 16.01 million tonne, showing a significant rise in value per unit.
Imports of 'soft oils' (soybean, sunflower) increased to 53% of the total, while palm oil imports decreased to 47%.
Soybean oil imports reached an all-time high of 5.47 MT in the 2024-25 oil year.
The government reduced import duties on edible oils to 16.5% and introduced a new order (VOPPA, 2025) to enhance transparency and ensure fair consumer prices.
- Who
- India's edible oil importers, Solvent Extractors Association of India (SEA)
- What
- India's edible oil import bill reached a record high due to increased global prices, while import volumes saw only a marginal rise. There was a shift in import composition from palm oil to soft oils like soybean and sunflower.
- When
- 2024-25 oil year (November-October)
- Where
- India
- Why
- Higher global prices for edible oils, coupled with a trade agreement allowing duty-free imports from Nepal for refined soybean and sunflower oils.
Industry Concerns
Government & Trade Agreement Factors
Import Volume vs. Value
Industry Concerns
Despite only a marginal increase in import volume, the value of edible oil imports has surged by 22% to a record Rs 1.61 lakh crore in 2024-25, driven by a 20% rise in global prices.
Government & Trade Agreement Factors
While global prices have increased, India benefits from a zero-duty trade agreement with Nepal, allowing for the import of refined soybean and sunflower oils at a lower cost.
Shifting Import Composition
Industry Concerns
The share of palm oil imports has decreased from 56% to 47%, while imports of 'soft oils' like soybean and sunflower have increased significantly, now comprising 53% of total imports, driven by higher soybean oil purchases.
Government & Trade Agreement Factors
Soybean oil imports reached a record high of 5.47 MT in the 2024-25 oil year, surpassing previous records. The government has adjusted import duties, reducing them from 27.5% to 16.5% to manage domestic prices.
Domestic Production vs. Imports
Industry Concerns
India imports approximately 57% of its edible oil needs, with palm, soybean, and sunflower oils constituting the majority of consumption. This reliance on imports makes the country vulnerable to global price fluctuations.
Government & Trade Agreement Factors
The government is implementing the Vegetable Oil Products Production and Availability Regulation Order, 2025 (VOPPA) to enhance transparency, prevent supply disruptions, and ensure fair consumer prices through monthly reporting requirements.
- Oil Year Covered
- 2024-25 (November-October)
- Total Edible Oil Import Value
- Record Rs 1.61 lakh crore
- Total Edible Oil Import Volume
- 16.01 million tonne (MT)
- Increase in Global Prices
- Over 20%
- Record Soybean Oil Imports
- 5.47 MT
- Share of Palm Oil Imports
- 47% (down from 56%)
- Share of Soft Oils (Soybean, Sunflower)
- 53% (up from 44%)
- Reduced Effective Import Duty
- 16.5% (from 27.5%)
Sources
India's palm oil imports hit 5-year low as soyoil purchases surge to record
India’s edible oil imports remain flat in oil year 2024-25, import bill surges on higher prices
Indias vegetable oil imports flat at 16.3 million tonnes in 2024/25: SEA
AWL Agri Business feels the heat as cheaper soybean oil from Nepal floods Indian market
