Soybean oil imports likely to see a sharp jump during festive season: SEA President
India’s soybean oil imports could reach a record 6.20 lakh tonnes in August, driven by competitive global prices, strong festive demand and disrupted sunflower oil supplies. Meanwhile, soybean acreage has declined, raising concerns over domestic production, while rising biofuel demand could further increase India’s edible oil import dependence and prices.
Soybean oil imports could jump sharply in August due to various factors, according to Sanjeev Asthana, President of Solvent Extractors’ Association of India (SEA).
In his monthly letter to SEA members, he said India’s soybean oil import story is turning red-hot just ahead of the festive season.
“Competitive international prices, strong domestic demand, and disruptions in sunflower oil shipments amid the Russia-Ukraine conflict are prompting Indian refiners to step up purchases. According to trade estimates reported, soybean oil imports could touch 6.20 lakh tonnes (lt) in August, a potential monthly record and nearly 46 per cent above the current marketing-year monthly average of 4.25 lt,” he said.
With sunflower supplies facing disruption and palm oil competing for market share, soybean oil is emerging as the preferred alternative.
He said: “For India, however, the bigger question remains: how long can rising domestic demand continue to be met through imports while domestic soybean acreage and production face weather-related uncertainties?”
Acreage a concern
Stating that acreage has been a concern due to El Niño this year, Asthana said India’s total kharif oilseed acreage stood at 184.46 lakh hectares (lh) as of August 14, marginally below 185.36 lakh hectares (lh) last year.
Groundnut, sesame and sunflower have shown encouraging acreage gains, while soybean has slipped to 120.84 lh from 122.61 lh. Castor has seen a sharper decline. With the sowing window progressing, the focus now shifts from acreage to crop condition, yields, weather and ultimately farmer returns.
He wondered whether India could convert its oilseed acreage into a stronger domestic balance of oilseeds and edible oils in 2026-27.
Exports value up
During April-May 2026, edible oil exports stood at 41,438 tonnes, valued at ₹720.85 crore, compared with 49,100 tonnes, valued at ₹707.09 crore, a year earlier. While volumes declined by around 16 per cent, export value increased by nearly 2 per cent, suggesting better value realisation. Asthana said groundnut oil led the export basket, followed by soybean oil and sunflower oil.
Looking at the oilseed trade, it certainly presents both opportunities and concerns. During April-May 2026, India exported 1.52 lt of oilseeds valued at ₹1,877.50 crore, with groundnut and sesame leading the exports.
At the same time, oilseed imports surged to 4.31 lt worth ₹2,284.93 crore, with soybean seed alone accounting for 4.13 lt. He said the sharp rise in soybean seed imports highlights the need to improve domestic productivity and ensure adequate availability of quality seed. Higher soybean imports also reflect lower stock levels in the country.
RBI on edible oil
He said the Reserve Bank of India’s observations on the diversion of edible oils from food to fuel add another important layer to the outlook. The global shift towards biofuels, particularly the increasing use of palm oil and other vegetable oils for biodiesel, has the potential to tighten export availability and keep international edible oil prices structurally firm. For India, one of the world’s largest edible oil importers, this has direct implications for the import bill, domestic prices and food inflation, he added.
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Source : The Hindu Businessline
