There is a dire need to control the import of edible oils

28-Oct-2025 06:15 PM

Mumbai. India's dependence on imported edible oils has risen to between 55 and 65 percent, which prevents adequate incentives for promoting domestic oilseed and edible oil production and creates uncertainty in the supply chain. The domestic market price of edible oils has become largely dependent on international market prices.

A recent study report recommends several measures to streamline the supply and availability of edible oils. These include a clear customs duty management system, strengthening the market data system, and consulting all stakeholders before making policy changes.

The report states that India remains the world's largest importer of edible oils. This is a negative development, and the huge amount of money spent annually on edible oil imports is putting a significant strain on the economy.

This situation needs to be addressed as soon as possible. The decades-old import duty structure on edible oils should now be reformed and restructured to a more timely and practical approach.

This means that import duties should be reduced when global market prices are high, and increased when they are low. However, when making duty changes, it should always be kept in mind that the price of imported edible oil should remain higher or equal to the price of domestic edible oil.

This will ensure that the domestic crushing and processing industry has no difficulty in selling its edible oil and will encourage them to purchase oilseeds from farmers at higher prices. Farmers will also be encouraged to increase oilseed production.

Since 2015, import duties on edible oils have been revised 25 times. The industry and trade sector are unaware of when import duties will be increased or decreased.