India's Edible Oil Demand Surges Amidst Rising Import Dependence

India's edible oil demand is surging due to its growing GDP and urbanization. The country's structural demand for edible oils remains strong, but its dependence on imports is a major concern. India's import dependence is expected to remain around 55-60% in the medium term.

The country's edible oil sector is navigating a complex intersection of economic growth, climate risks, geopolitical disruptions, and global biofuel policies. Bhavna Shah, Vice President of the Indian Vegetable Oil Producers' Association (IVPA), says that India must focus on improving domestic oilseed productivity, strengthening supply-chain resilience, and ensuring policy stability to reduce long-term import vulnerability.

Shah highlights that climate risk is a major concern for India's edible oil supply chain. Weak monsoons affect domestic oilseed output, rural incomes, reservoir levels, and input usage simultaneously. This creates both supply-side and demand-side stress coupled with disruption in the supply of fertilizers.