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India must improve oilseed yields to reduce imports: SEA chief

Sanjeev Asthana said India must boost oilseed productivity and expand production of cottonseed and rice bran oils to reduce edible oil import dependence. Despite a record 43.06 million tonnes of oilseed output in 2025–26, India still imports nearly 60% of its edible oil needs, costing $18–19 billion annually.

India should significantly improve yields from oilseed crops, and tap the potential of cottonseed oil, ricebran oil, and other alternatives, if it aims to reduce imports in the coming years, according to Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA).

In his monthly letter to the members of SEA on Wednesday, he said India is expected to produce a record 43.06 million tonnes of oilseeds during 2025-26, led by rapeseed-mustard, groundnut and soybean.

Despite this achievement, the country continues to import nearly 60 per cent of its edible oil requirements. With population growth, rising incomes and changing consumption patterns driving demand, edible oil remains a kitchen essential.

Cutting import dependance

“The reality is simple: import dependence can be reduced by increasing domestic production and productivity. If India aims to reduce imports to around 9.5-10 million tonnes by 2030, we must significantly improve yields while tapping the potential of cottonseed oil, rice bran oil and other alternative resources. Otherwise, the current edible oil import bill of $18-19 billion may continue to rise,” he said.

Highlighting the roadmap for self-resilience, Asthana said SEA shared its recommendations on rabi price policy with A Ganesh Kumar, Chairman of the Commission for Agricultural Costs and Prices (CACP), recently.

The suggestions focused on the need to launch a focused National Oilseeds Mission, accelerate crop diversification, align MSP policies with productivity and diversification goals, and to invest aggressively in technology. The success of SEA-Solidaridad’s 3,000 mustard model farms has already demonstrated that productivity gains are measurable, scalable and achievable. India must now replicate such models nationwide, he said.

On oilmeal exports, he said geopolitical tensions, higher freight costs and logistical disruptions adversely affected oilmeal exports during the year. However, new opportunities emerged. China became the largest buyer of Indian rapeseed meal witnessing exceptional growth, while South Korea strengthened its position as a major importer of castor, rapeseed and soybean meals.

Sharing common objective

Although exports to Bangladesh declined, several other markets, including Kenya, Germany, Nepal and France expanded their purchases. Going forward, India’s competitiveness must rest on productivity, quality and reliability rather than exchange rate advantages alone, he said.

On balancing growth and sustainability, he said the discussions surrounding biotechnology and genetically modified crops will continue, but all stakeholders share the common objective of enhancing domestic production while safeguarding sustainability, farmer welfare and consumer confidence.

At the same time, weather risks remain a concern. With monsoon rainfall projected at around 90 per cent of the Long Period Average, August and September will be critical months for flowering and pod formation in oilseed crops. Any disruption during this period could affect both kharif and subsequent rabi production, he said.

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Source : The Hindu Businessline

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