The Solvent Extractors’ Association of India (SEA) on Monday welcomed Prime Minister Narendra Modi’s appeal urging people to reduce their consumption of cooking oils, saying such a move would help lower India’s dependence on imports and conserve valuable foreign exchange reserves.
PM Modi had earlier called for reduced use of edible oils and chemical fertilisers while encouraging natural farming and the adoption of ‘swadeshi’ products as part of efforts to make India more self-reliant and cut foreign exchange outflows.
In a statement, the SEA said the Prime Minister’s message on controlling edible oil consumption carried far greater economic and strategic importance than many people might immediately recognise.
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“With climate uncertainties increasing, biodiesel mandates tightening global vegetable oil supplies, and geopolitical tensions creating additional risks, this may be the right time for the country to think in the long term,” SEA Executive Director BV Mehta said.
He noted that alongside increasing domestic oilseed production, adopting balanced consumption habits would also play an important role in reducing the country’s vulnerability to global market shocks.
India currently meets nearly 60 per cent of its edible oil demand through imports. During the 2024-25 marketing year ending in October, the country imported around 16 million tonnes of edible oils worth nearly Rs 1.61 lakh crore.
The industry body pointed out that the ongoing conflict in West Asia has already affected freight rates, energy prices, currency fluctuations and the overall sentiment in commodity markets. According to the association, such developments directly influence edible oil prices and increase import costs for countries like India that rely heavily on overseas supplies.
Mehta also warned that rising climate-related threats, including El Niño conditions, could disrupt agricultural production globally at a time when international edible oil prices remain volatile. “At a time when global weather risks threaten production and edible oil prices remain uncertain, India cannot afford to become increasingly dependent on imports,” he said.
The association observed that India’s heavy reliance on imported edible oils—close to 60 per cent of total demand—places a significant financial burden on the national exchequer whenever global prices rise. It estimated that edible oil imports cost the country nearly USD 18 billion last year.
“Any disruption in production among major palm, soybean or sunflower oil-producing countries can quickly trigger imported inflation in India,” Mehta said. “So, adopting sensible consumption practices today can help the country avoid sharper price shocks in the future. Tightening the belt now may be wiser than facing a larger crisis later.”
India mainly imports palm oil from Indonesia and Malaysia, while soybean oil is sourced primarily from Argentina and Brazil.
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