Drought-hit crops, rising costs may drive up India’s farm commodity imports
India may increase agricultural imports in 2026–27 as drought-hit soybean, groundnut and other crops tighten domestic supplies. Edible oil imports could rise to 17.5 million tonnes, while poultry feed manufacturers seek soybean meal and maize imports to contain costs amid rising prices.
India may import more food, feed and agricultural raw materials in 2026-27 as drought-hit crops raise concerns over domestic supplies and industries seek easier imports to contain costs, reported The Economic Time s.
According to the report, edible oil imports could rise as kharif soybean and groundnut output comes under pressure, while uncertainty remains over the winter mustard crop. The sugar industry has secured an extension for raw sugar imports, poultry feed manufacturers are seeking permission to import soybean meal and maize, and textile makers want the removal of import duty on cotton.
The starch industry is also concerned that greater diversion of maize towards ethanol production could increase the need for starch imports from China, the report said.
Soybean shortages are expected to persist this financial year after last year’s crop was affected by excess rainfall. Drought has since damaged crops across Marathwada, Vidarbha, Telangana and parts of Madhya Pradesh.
Divya Kumar Gulati, former president of the Compound Livestock Feed Manufacturers Association, told The Economic Times that the industry had asked the government to allow imports of 3 million tonnes of soybean meal. Soybean meal and maize together account for 80 per cent of poultry feed, and their high prices are adding to cost pressures.
Gulati warned that restrictions on imports could push up poultry prices and cause losses for farmers.
Groundnut production is also expected to decline. According to the latest estimate cited by the report, kharif groundnut output could fall by more than 20 per cent this year.
According to The Economic Times report, India’s edible oil imports could increase to 17.5 million tonnes in 2026-27 from 16.5 million tonnes in 2025-26, owing to the impact of drought on domestic oilseed production. The final estimate would depend partly on mustard output.
The report also noted that soybean imports from least developed countries in Africa had reached a record level after last year’s crop was hit by excess rainfall.
The pressure on domestic supplies comes amid concerns over the impact of El Niño on agricultural production, particularly pulses, sugar, oilseeds and paddy. The combination of lower domestic output and rising input costs could increase the share of imported agricultural commodities in the country’s food and feed supply.
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Source : Business Standard
