India’s Continued Dependence on Edible Oil Imports India, despite being one of the world’s largest agricultural economies, continues to rely heavily on the import of edible oils. While crude petroleum imports are widely discussed due to their massive impact on foreign exchange outflow, the import of edible oils and oilseeds constitutes another major drain on India’s external finances. This dependency raises important questions about agricultural planning, domestic productivity, and long-term economic sustainability. Historically, India was nearly self-sufficient in edible oil production. Until the early 1990s, the country produced a substantial share of its required oilseeds — groundnut, mustard, sesame, sunflower, and soybean — through traditional farming systems. However, economic liberalisation and reduced tariff protection led to a surge in cheap edible oil imports, especially palm oil from Southeast Asia. This discouraged domestic cultivation, ultimately pushing India into a cycle of dependency. In the last two decades, India has been importing around 60–70% of its edible oil requirement. Palm oil forms the bulk of this import, followed by soybean and sunflower oil. The foreign exchange spent on edible oil imports often ranges between 70,000 crore and 1 lakh crore rupees annually, depending on global prices. This is a significant financial burden for a nation that is otherwise a leading exporter of agricultural commodities. Curiously, even as India exports wheat, rice, sugar, spices, fruits, and vegetables in large volumes, oilseed production has not kept pace with national demand. Several factors explain this stagnation. First, oilseed crops are risk-prone and sensitive to climate variations, making them less attractive to farmers compared to paddy or wheat. Second, minimum support prices (MSP) for oilseeds have historically been less rewarding. Third, oilseed processing and marketing infrastructure has lagged behind, discouraging farmers from allocating more land to these crops. Finally, government procurement of oilseeds is inconsistent, creating uncertainty. Given that India is predominantly an agriculture-based nation with millions dependent on the sector, this structural weakness demands urgent attention. Increasing domestic oilseed production is not merely an agricultural issue — it is central to improving India’s balance of payments (BoP) and strengthening economic resilience. A long-term strategy must include diversification of cropping patterns, strengthening of research on high-yielding and climate-resilient oilseed varieties, and expansion of irrigation facilities. At the same time, price incentives such as improved MSP, assured procurement, and crop insurance can encourage farmers to shift towards oilseed cultivation. Encouraging contract farming, improving storage and milling facilities, and reducing post-harvest losses will further boost productivity. In recent years, government initiatives like the National Mission on Oilseeds and Oil Palm (NMOOP) and the push for oil palm cultivation in the Northeast and Andaman regions reflect renewed commitment. However, results will depend on consistent policy support and efficient implementation. India’s overdependence on edible oil imports is neither economically sustainable nor strategically wise. By transforming oilseed production into a national priority, India can save substantial foreign exchange, strengthen rural livelihoods, and achieve greater self-reliance. The path forward lies in smart agricultural planning and long-term investment that aligns with the country’s economic interests. #சிந்தனை