No Budget Proposals to Boost Oilseed Production

02-Feb-2026 05:20 PM

Mumbai: The Union Budget presented in Parliament on 1 February 2026 has left the oilseed industry and trade deeply disappointed. A leading industry body, the Solvent Extractors’ Association of India (SEA), stated that the government has missed a golden opportunity to enhance oilseed production and move toward self-reliance. The association had submitted several important recommendations in its pre-budget memorandum for rapid growth and expansion of the oilseed–edible oil sector, but these were ignored.

According to the association, the Indian oilseed and edible oil sector has undergone significant changes over the past three decades, with the country’s dependence on edible oil imports rising to around 60 percent. The main reason is that while domestic demand and consumption of edible oils have been increasing rapidly, oilseed production has not grown at a comparable pace. During 2025–26, domestic consumption of edible oils is estimated to rise to about 26–26.5 million tonnes, whereas total availability from indigenous sources is likely to remain stuck at only 11–11.5 million tonnes.

The Union Budget for 2026–27 could have served as an important opportunity and an effective platform to boost domestic production of oilseeds and edible oils. The association has consistently provided the government with key suggestions to reduce edible oil imports and increase domestic production, but no attention was paid to these in the budget. Since the current level of customs duty on edible oil imports is considered convenient for both consumers and oilseed producers, the Finance Minister did not deem it necessary to make any changes in this regard in the budget.