High-Level Policy Dialogue on Navigating India’s Policy Landscape in the Edible Oil Sector

For economic growth, policy stability is essential because predictable rules encourage investment and protect consumers. Policy stability requires policymakers to take into account any disruptions to growth, including inflation and geopolitical risks. Consistency in policy is essential for products of mass consumption as it has a deep impact across income levels of people.

Take, for example, edible oils. India is import-dependent for edible oils as the country has not achieved complete self-sufficiency, as yet. Edible oil imports totalled over US$ 17 billion in 2024. The edible oil supply chain is complex, involving both global stocks (vulnerable to disruptions) and local production limits. That mix of vulnerability and complexity makes it hard for policymakers to respond with simple solutions.

Within the country, while annual consumption of edible oil exceeds 25 million tonnes, domestic production stands at about 10 million tonnes. The reliance on imports is rooted in several enduring realities of Indian agriculture and changing patterns of consumption. Rising incomes and changing lifestyles have pushed up per person consumption of edible oils and expanded demand from processed food makers. Taken together, these forces make India a substantial and repeat buyer on international markets for the foreseeable future.