The Solvent- Extractors’ Association of India (SEA) has underscored the need for targeted interventions such as region-specific incentives, assured procurement, and yield improvement programmes to sustain momentum towards edible oil self-reliance.
In his monthly letter to SEA members on Wednesday, Sanjeev Asthana, SEA President, said kharif oilseed sowing stood at 178.64 lakh hectares (lh) as on August 15, down by 6.74 lh, from last year’s final acreage of 185.38 lh.
The decline reflects a shift in farmer preference towards competing crops such as maize, driven by ethanol and feed demand. While castor seed has shown modest gains, major crops such as soyabean and groundnut have seen reductions signalling the need to reinforce crop profitability and farmer confidence, he said.
“This shortfall highlights our vulnerability to acreage competition and underlines the importance of targeted interventions — region-specific incentives, assured procurement, and yield improvement programmes — to close the gap and sustain momentum toward edible oil self-reliance,” he said.
Healthy diet
He said edible oils are a vital part of a balanced diet, supplying energy and essential fatty acids that the body cannot make. As per ICMR–NIN Dietary Guidelines 2020, visible fat (including cooking oils) should account for 20-30 per cent of daily calories, or roughly 20-50 gram per person per day, depending on age, activity, and health needs.
Oils rich in unsaturated fats support heart health, brain function, and nutrient absorption. Edible oil industry plays a responsible role by offering healthier blends, fortifying oils to combat deficiencies, ensuring clear labelling, and encouraging moderation. “By reinforcing edible oils as a necessary and beneficial dietary component when consumed in recommended amounts, we can work alongside the Government to improve public health while safeguarding nutrition,” he said.
On the Vegetable Oil Products Production and Availability (Regulation) Amendment Order, 2025, Asthana said it marks the most significant update to edible oil sector in over a decade. Replacing key provisions of the 2011 Order and aligning with the Collection of Statistics Act, 2008, it seeks to improve transparency, data accuracy, and accountability across the value chain.
While larger players may adapt quickly, thousands of small and unorganised producers could find portal-based registration and monthly filing challenging. The bigger question is whether the government can identify and onboard all such units; without full coverage, compliance gaps could persist despite tighter rules, defeating the objectives of the Order, he said.
US tariffs
On the recent US decision to raise tariffs from 25 per cent to potentially 50 per cent on a wide range of Indian exports, Asthana said while these measures are linked to broader geopolitical developments, including India’s continued trade and energy cooperation with Russia, their direct impact on Indian economy — and particularly on the oilseed and edible oil sector — is expected to be limited.
“Our market fundamentals, diverse trade relationships, and strong domestic demand cushion us from any significant fallout,” he said.
The government has already acted proactively to maintain stability, halving the basic import duty on crude palm, soyabean, and sunflower oils from 20 per cent to 10 per cent. This step will help temper prices, ensure affordability for consumers, and support the smooth functioning of refining operations.
“India still imports a substantial share of its edible oil requirements, but our policy direction is clear: accelerate domestic oilseed production, modernise processing capacities, and strengthen the value chain from farm to fork. Global trade frictions may cause short-term ripples, but our sector remains on a steady path toward greater self-reliance and competitiveness,” Asthana said.
Published on August 20, 2025