Agriculture Minister expressed deep concern over increasing import of edible oils
25-Jun-2025 01:27 PM
New Delhi. The Union Agriculture Minister has expressed serious concern over the continuous rise in the import of edible oils and stressed the urgent need for India to become self-reliant in oilseed oil production.
He noted that ideally, India should not rely on imports of edible oils, as this undermines the ability of domestic oilseed producers to secure attractive and profitable prices for their crops.
However, the persistent gap between domestic demand and supply makes it difficult to completely halt imports.
To curb the rising prices of edible oils in the domestic market, the government recently reduced the basic import duty on crude palm oil, soybean oil, and sunflower oil by half. Critics argue that while this may help consumers in the short term, it poses a serious threat to the interests of local oilseed farmers and processors.
They emphasize that policy decisions must also support the long-term sustainability of domestic oilseed cultivation and crushing industries.
Last year, the Ministry of Agriculture had successfully advocated for a 20-percentage-point hike in the basic customs duty on edible oil imports.
However, on May 30 this year, the duty was reduced to 10 percent in response to rising prices. This policy reversal has raised concerns within the ministry, which fears that the reduced customs duty will lead to a surge in the import of cheap foreign oils, thereby negatively impacting domestic oilseed production.
According to the Agriculture Minister, the government must strike a balance between consumer interests and the livelihood of farmers.
Special initiatives are needed to support and incentivize oilseed producers, and import policies must be aligned with the goal of strengthening indigenous production.
The minister emphasized that the cost of imported edible oil should not undercut the price of domestically produced oil. While eliminating imports entirely may not be feasible at present, unchecked reliance on foreign oils will discourage farmers from increasing oilseed production and delay the country’s journey toward self-reliance.
India currently spends billions of dollars annually on edible oil imports, underscoring the need for long-term strategic action in this sector.